CapitaLand Mall Trust Q1 DPU up 1.9% to 2.73 cents

SINGAPORE - Capitland Mall Trust (CMT) started 2016 with a solid first quarter, with income and distribution to unitholders pushed up partly by the contribution from the newly acquired Bedok Mall.

In the three months to March 31, CMT's gross revenue rose 7.4 per cent year-on-year to S$179.8 million, while net property income jumped 8.6 per cent in the period to S$127.9 million.

This led to a 4.2 per cent increase in income distributable to unitholders to S$96.7 million. Distribution per unit was 2.73 cents, up 1.9 per cent compared with a year ago.

Earnings in the quarter was boosted a S$14.6 million contribution from Bedok Mall, which CMT acquired in October last year. Higher rentals from IMM Building and new leases from other properties also helped.

"This was partially offset by lower gross revenue from JCube due to lower occupancy, and the absence of recurring income from Rivervale Mall following its divestment on December 15," CMT Management Limited, the trust manager, said in the results announcement released on Friday (April 15).

Chief executive of the trust manager Wilson Tan noted that, despite the challenging macro environment, CMT's portfolio malls recorded a year-on-year growth of 4.9 per cent in shopper traffic and 4.6 per cent in tenants' sales in the first quarter. Total occupancy was at 97.7 per cent as at March 31.

Looking ahead, the redevelopment of Funan DigitaLife Mall will begin in the second half this year to create a new lifestyle destination, Mr Tan said.

"In addition, we will continue to make progress with the asset enhancement initiatives for Plaza Singapura, Bukit Panjang Plaza and Tampines Mall, aimed at staying ahead of the evolving aspirations and needs of both our shoppers and tenants," he added.

CMT has a portfolio of 16 shopping malls across both the suburban areas and downtown of Singapore, with a net asset value per unit of S$1.88 as at March 31.

CMT shares rose three cents or 1.4 per cent to S$2.17 on Friday ahead of the results announcement.

whwong@sph.com.sg