CapitaLand Malaysia Trust pays 2.24 sen DPU as 4Q net property income jumps 54.4%

• The trust's revenue rose 57.5% to RM108.51 million in the October to December months in 4QFY2023, from RM68.9 million in 4QFY2022, its bourse filing showed, driven mainly by contribution from the Queensbay Mall that was acquired in March 2023, while most other malls under the trust's portfolio also reported improved revenues due to higher occupancy and positive rental reversions.

KUALA LUMPUR (Jan 30): CapitaLand Malaysia Trust (CLMT) reported a 54.4% jump in its net property income (NPI) for the fourth quarter of its 2023 financial year (4QFY2023) to RM63.02 million from RM40.8 million in the corresponding quarter in FY2022, as it reported stronger revenue.

The trust's revenue rose 57.5% to RM108.51 million in the October to December months in 4QFY2023, from RM68.9 million in 4QFY2022, its bourse filing showed, driven mainly by contribution from the Queensbay Mall that was acquired in March 2023, while most other malls under the trust's portfolio also reported improved revenues due to higher occupancy and positive rental reversions.

These were the same factors that drove the trust to post stronger earnings in FY2023, with NPI jumping 42.6% to RM217.4 million from FY2022's RM152.5 million. Annual gross revenue rose 43.4% to RM395.4 million from RM275.82 million in FY2022.

The trust's distributable income to unitholders for 4QFY2023 was RM32.7 million, up RM9.5 million or 40.8% from 4QFY2022. For the full FY2023, distributable income to unitholders rose RM22.3 million or 25.5% to RM109.8 million from FY2022.

The trust announced a distribution per unit (DPU) of 2.24 sen for the July 1, 2023 to Dec 31, 2023 period, payable by March 2024. This will raise its total DPU for FY2023 to 4.17 sen, from FY2022's 4.01 sen.

As of Dec 31, 2023, CLMT’s portfolio valuation stood at RM5 billion, a 28.2% increase from RM3.9 billion in FY2022, attributed to the inclusion of Queensbay Mall.

Lui Chong Chee, chairman of CLMT's manager CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), attributed the trust's resilient performance on its strategic investments and proactive asset and capital management.

To maintain the attractiveness of CLMT’s malls, Lui added that continuous operational improvements and asset enhancement initiatives (AEI) have been implemented for portfolio optimisation and an enhanced shopping experience.

Meanwhile, CMRM CEO Tan Choon Siang said the group's efforts to refresh the tenant mix and introduce new brands have led to an increased retail portfolio occupancy of 91.7% and a positive rental reversion of 7% in FY2023, while shopper traffic rose 25.1% and tenant sales per square foot grew by 7.8%.

“We have completed the AEI at 3 Damansara, and shoppers can anticipate new and exciting F&B offerings. Retrofitting works are currently underway at Glenmarie Distribution Centre to convert it into a temperature-controlled distribution centre, and we have plans for an upcoming AEI at Gurney Plaza.

"Looking ahead, we will continue to maintain our proactive approach to asset and capital management while remaining vigilant in identifying strategic opportunities to sustain and enhance the performance of our portfolio, with financial discipline," Tan added.

Shares in CLMT closed half a sen or 0.87% lower at 57 sen, giving the company a market capitalisation of RM1.56 billion.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!