CapitaLand Mall Trust (CMT) posted a stable first-quarter distribution per unit despite a fall in gross revenue and net property income.
The DPU for the three months ended March 31 was 2.73 cents, unchanged from a year earlier, the trust manager said yesterday. But the first-quarter revenue slipped 4.3 per cent year on year to $172 million due to the redevelopment of the Funan DigitaLife Mall, which ceased operations in July last year.
This led to a 6.1 per cent drop in net property income to $120.1 million from the first quarter of 2016.
"Against a backdrop of global uncertainties and subdued business sentiment, CMT continues to deliver stable financial returns to unitholders," said Mr Wilson Tan, chief executive of trust manager CapitaLand Mall Trust Management, crediting the steady DPU on the consistent performance of CMT's underlying portfolio.
Distributable income for the first quarter inched up by 0.2 per cent year on year to about $97 million.
CMT's portfolio comprises 16 shopping malls here, including Tampines Mall, Junction 8, IMM Building, Plaza Singapura and Bugis Junction. As at March 31, its portfolio occupancy was 97.7 per cent, down slightly from 98.5 per cent at the end of last year.
AT A GLANCE
GROSS REVENUE: $172.02 million (-4.3%)
NET PROPERTY INCOME: $120.06 million (-6.1%)
DISTRIBUTION PER UNIT: 2.73 cents (unchanged)
The trust manager said the construction of Funan is on track. "In response to the public's excitement about the new integrated development, Funan will be unveiling its experiential show suite at the end of this month," Mr Tan said. This will let shoppers experience what the new development - to be completed in late 2019 - has to offer.
Quarterly earnings per unit was 2.92 cents down from 3.15 cents a year before. Net asset value per unit came in at $1.89 as at March 31, unchanged from Dec 31, 2016.
The counter closed one cent lower at $2.01 yesterday before the earnings were announced.