KUALA LUMPUR: CapitaMalls Malaysia Trust (CMMT) posted a net property income (NPI) of RM52.4mil for the second quarter (Q2) ended June 30, 2015, up 2.4% from a year earlier.
“This was on the back of the full quarter contribution from East Coast Mall (in Kuantan) which completed its two-year asset enhancement programme at end-2014, as well as higher rental reversions from many new and renewed leases,” said the manager, CapitaMalls Malaysia REIT Management Sdn Bhd (CMRM).
However, the shopping mall-focused real estate investment trust’s Q2 net profit of RM88.63mil was 15.5% lower than a year earlier due mainly to a lower fair value gain of investment properties.
The valuation surplus recognised during the quarter fell 23.6% to RM52.1mil from the corresponding period a year ago.
Revenue for the quarter, meanwhile, grew 1.8% to RM79.6mil mainly due to contribution from East Coast Mall.
CMMT’s distribution per unit (DPU) for Q2 was 2.18 sen, bringing the total DPU for the the first half-year to 4.43 sen per unit. The annualised DPU of 8.93 sen for the six-month period translates to an annualised distribution yield of 6.6% based on CMMT’s closing price of RM1.35 per unit on July 15.
CMRM chairman David Wong Chin Huat said there was a temporary negative impact in Q2 as consumers adjusted to the implementation of the goods and services tax in April.
“We expect retail sales to pick up in the last quarter of the year. As CMMT malls are largely focused on day-to-day necessity shopping, they have proven resilient through economic cycles in the past and should continue to do so.” he said.
CMRM chief executive officer Low Peck Chen noted that for the quarter under review, East Coast Mall achieved “stellar” NPI growth of 27.9% following the completion of its two-year asset enhancement programme while Gurney Plaza and The Mines continued their steady performances, registering NPI growth of 7.2% and 9.2% respectively.
CMMT units rose 1 sen to close at RM1.36 on Thursday.