CLMT’s 2Q NPI rises 52% on contribution from newly acquired Queensbay Mall, higher rental income

• Earnings per share rose to 1.11 sen for the quarter ended June 30, 2023, from 1.07 sen previously, according to CLMT's bourse filing.
• Quarterly revenue grew 53.3% to RM104.8 million from RM68.3 million.

KUALA LUMPUR (July 25): Capitaland Malaysia Trust (CLMT) recorded a second quarter net property income (NPI) of RM56.8 million, 51.8% higher than RM37.4 million a year earlier, boosted by contribution from the newly acquired Queensbay Mall as well as higher rental income.

Earnings per share rose to 1.11 sen for the quarter ended June 30, 2023, from 1.07 sen previously, according to CLMT's bourse filing.

Quarterly revenue grew 53.3% to RM104.8 million from RM68.3 million.

CLMT’s distributable income rose 32.7% to RM28.6 million, from RM21.6 million a year earlier, while distribution per unit increased 6% to 1.06 sen from 1.0 sen.

According to the trust, its property operating expenses jumped 55.1% to RM47.9 million from RM30.9 million, as its portfolio continued to face increased cost pressure driven by an electricity surcharge of 20 sen for the first half of 2023 (1H2023) and higher maintenance as well as marketing expenses on the back of higher mall activities.

Meanwhile, finance costs rose to RM22.4 million from RM11.01 million as the group’s borrowings increased by RM768.9 million to partly finance the acquisition of Queensbay Mall.

For 1H2023, CLMT’s NPI grew 30.7% to RM96.1 million from RM73.5 million, while revenue climbed 34.8% to RM183.2 million from RM135.9 million.

Despite uncertainties in the global economy, CLMT will continue to reinforce its asset and lease management efforts to strengthen its portfolio and proactively implement measures to mitigate the impact of rising cost, said CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) chairman Lui Chong Chee. CMRM is the manager of CLMT.

On the portfolio front, the trust will be embarking on a convert-to-suit exercise to transform the freehold logistics warehouse at the Hicom-Glenmarie Industrial Park in Shah Alam into a temperature-controlled distribution centre.

CLMT recently announced the acquisition of the logistics warehouse, which is expected to be completed in 2H2023. The property will be leased to a fashion retailer for 10 years, said CMRM CEO Tan Choon Siang.

“Continuing our journey to enhance our portfolio’s attractiveness, new and exciting food and beverage  concepts were introduced at Gurney Plaza, East Coast Mall and Sungei Wang Plaza to refresh the tenant mix and elevate the overall retail experience.

“Our efforts to create value continue with the planned asset enhancement initiative at 3 Damansara to optimise about 14,000 square feet of space at the lower ground floor which is expected to be completed by end-2023, injecting more quality F&B offerings. We remain proactive in our portfolio and asset management and continually evaluate opportunities to grow and enhance CLMT’s portfolio,” Tan added.

Shares of CLMT closed up two sen or 3.85% at 54 sen, giving the trust a market capitalisation of RM1.46 billion.