CapitaLand Malaysia posts lower net profit to RM37mil

  • Business
  • Wednesday, 25 Apr 2018

CapitaLand Malaysia Mall Reit Management Sdn Bhd CEO Low Peck Chen, CMMT

PETALING JAYA: CAPITALAND MALAYSIA MALL TRUST (CMMT) registered a 7.4% dip in net profit to RM37.25mil for the first quarter ended March 31 compared with the previous corresponding period.

This was on the back of a 2.9% lower revenue of RM89.7mil for the quarter under review, mainly due to lower rental rates and occupancy.

According to a filing with Bursa Malaysia, CMMT recorded lower gross revenue from The Mines, due to lower rental rates, while the lower gross revenue from Tropicana City Property was due to lower occupancy.

The decrease in revenue was mitigated by a one-off compensation and forfeiture of rental deposit for the premature termination of an anchor tenant at Sungei Wang, as well as higher rental rates from Gurney Plaza and East Coast Mall.

For the quarter under review, CMMT posted a net property income of RM57mil and a distribution per unit (DPU) of 2.02 sen for the quarter.

Annualised DPU for the quarter was 8.19 sen, which translated to an annualised distribution yield of 7.1%, based on CMMT’s closing price of RM1.15 per unit on April 23, 2018.

As CMMT’s DPU is paid out on a half-yearly basis, CMMT unitholders can expect to receive their DPU for the quarter, together with the DPU for the quarter ending June 30, 2018, by August.

CapitaLand Malaysia Mall Reit Management Sdn Bhd CEO Low Peck Chen, CMMT’s manager, said CMMT achieved a positive rental reversion of 2.2% and a stable portfolio occupancy remained stable of 93.7% as at March 31, 2018, amidst a challenging operating environment.

“To improve the diversity of the tenant mix in our malls, we are expanding the food and beverage options at The Mines’ Level 3 and Tropicana City Mall’s ground floor.

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