CapitaLand Mall Trust’s DPU slightly higher despite Funan mall closure

SINGAPORE — CapitaLand Mall Trust (CMT) on Friday (July 21) reported a slight increase in second-quarter distribution per unit (DPU) from the corresponding period a year earlier, despite the closure of Funan mall for redevelopment.

For the three months ended June 30, CMT reported a DPU of 2.75 cents, up from 2.54 cents in the year-earlier period, as distributable income to unitholders rose 0.1 per cent to S$97.2 million. Net property income edged 1.2 per cent higher to S$117.6 million, despite gross revenue falling 1.3 per cent to S$168.6 million due to Funan mall ceasing operations.

Based on CMT’s closing price of S$2.00 per unit on July 20, the annualised distribution yield for the second quarter was 5.52 per cent. Unitholders can expect to receive their DPU on August 29.

Mr Tony Tan, CEO of the trust manager of CMT, said: “Notwithstanding the challenges in Singapore’s retail sector, CMT has produced yet another steady set of results for the quarter under review… Portfolio occupancy as at June 30 was a high 98.6 per cent, outperforming the average market occupancy level.”

“In the second quarter, Bukit Panjang Plaza marked the completion of a major asset enhancement initiative that serves to strengthen its appeal to shoppers. The rooftop garden and the

expanded public library on Level 4 have increased the mall’s communal and recreational space to better meet the needs of the community,” he added.

CMT noted the Ministry of Trade and Industry’s preliminary estimate showing the Singapore economy grew by 2.5 per cent on a year-on-year basis in the second quarter, the same pace of growth as in the previous quarter. Data from the Department of Statistics showed the retail sales index (excluding motor vehicle sales) increased 5 per cent and 0.6 per cent on a year-on-year basis in April and May, respectively. CMT said it will focus on the active lease management for the remaining 327 leases due for renewal in 2017, as well as operational excellence as it seeks to unlock value through asset enhancement initiatives.

CMT’s portfolio comprises about 2,900 leases with local and international retailers. CMT’s 16 shopping malls, which are strategically located in the suburban areas and downtown core of Singapore, comprise Tampines Mall, Junction 8, Funan, IMM Building, Plaza Singapura, Bugis Junction, Sembawang Shopping Centre, JCube, Raffles City Singapore (40 per cent interest), Lot One Shoppers’ Mall, 90 out of 91 strata lots in Bukit Panjang Plaza, The Atrium@Orchard, Clarke Quay, Bugis+, Westgate (30 per cent interest) and Bedok Mall. CMT also owns 122.7 million units in CapitaLand Retail China Trust, the first China shopping mall REIT listed on the Singapore Exchange in December 2006.

CMT units rose 1.5 per cent to close at S$2.03 each on Friday, giving them a year-to-date gain of 7.7 per cent, Bloomberg data showed.