CapitaLand Mall Trust DPU up 5% at 2.92 cents for Q3

CapitaLand Mall Trust's gross revenue for the three months to Sept 30 was $170.5 million, up 0.7 per cent from the same period a year earlier.
CapitaLand Mall Trust's gross revenue for the three months to Sept 30 was $170.5 million, up 0.7 per cent from the same period a year earlier.PHOTO: ST FILE

SINGAPORE - CapitaLand Mall Trust (CMT) has posted a third-quarter distribution per unit (DPU) of 2.92 cents, up 5 per cent from the same period a year earlier.

Gross revenue for the three months to Sept 30 was $170.5 million, up 0.7 per cent from the same period a year earlier although contributions from Junction 8, IMM Building, Plaza Singapura, Bedok Mall and Tampines Mall were partially offset by lower gross revenue from Sembawang Shopping Centre, which was divested in June, and lower occupancy and rental rates contracted on new and renewed leases from JCube and Bukit Panjang Plaza.

Net property income rose 1.1 per cent to $122.7 million. Distributable income rose 4.9 per cent to $103.5 million.

Rental reversions were 0.6 per cent. This refers to the increase in current rental rates versus preceding rental rates, typically committed three years ago. Retention rate for tenants was 82.4 per cent.

Shopper traffic so far this year was down 1.8 per cent from Sept 2017. Tenants' sales per square foot per month in the same period rose 0.5 per cent.

Portfolio occupancy as at Sept 30, 2018 was 98.5 per cent, above the market occupancy level of 92.7 per cent, CMT said. Asset enhancement initiatives at Tampines Mall and Westgate are on track to complete in the fourth quarter of 2018.

Last quarter, CMT announced its intention to acquire the remaining 70 per cent interest in Westgate to reinforce CMT's market leadership in Jurong Lake District while enhancing portfolio resilience and income diversification. An extraordinary general meeting will be held on Oct 25 to seek approval from unitholders on the proposed acquisition. Assumingapproval is obtained at the meeting, the acquisition of Westgate is expected to be completed on Nov 1.

Funan will open ahead of schedule in the second quarter next year and start contributing income from the second half of 2019, CMT said. Including leases under advanced negotiations, the leasing for Funan's retail and office components has to date reached about 70 per cent and 60 per cent respectively.

Net asset value per unit was $2.03 as at Sept 30, up from $1.95 as at Dec 31.

Unitholders can expect to receive their third-quarter DPU on Nov 30. The books closure date is Nov 7.