PETALING JAYA: It was a tale of two performances for Capitaland Malaysia Trust
(CLMT) in the second quarter, with five malls posting weaker income sequentially while 3 Damansara was the exception with a stronger net property income (NPI).
Sungei Wang Plaza slipped back into the red quarter-on-quarter, although on a year-on-year (y-o-y) basis, it managed to narrow its net property loss to about RM311,000.
CLMT’s Gurney Plaza and Queensbay Mall, both located in Penang island, contributed more than two-thirds of the total NPI for the second quarter of June 30, 2026 (2Q26).
Year-on-year, Gurney Plaza and Queensbay Mall delivered stronger NPI.
CLMT’s overall NPI for 2Q26 grew by 12.5% y-o-y to RM77.36mil, also supported by its industrial and logistics assets.
On a gross revenue basis, CLMT saw a 6.3% y-o-y increase to RM123.05mil.
The real estate investment trust (REIT) said in a stock exchange filing that 2Q26 revenue rose mainly due to higher revenue recorded by most of its portfolio properties.
This was a result of positive rental reversions, rental step-up and the contribution from industrial and logistics assets acquired in 2025, namely Senai Airport City Facilities, Synergy Logistics Hub and Iskandar Puteri Facilities.
Property operating expenses for 2Q26 fell 2.7% y-o-y, mainly due to lower utilities expenses as a result of new tariff effective from July 2025.
The decrease was partially offset by an increase in provision for doubtful debts and staff costs.
CLMT’s distribution per unit (DPU) is paid out on a half-yearly basis.
Unitholders can expect to receive a DPU of 2.65 sen for the first-half period, payable by September 2026. This represents a 7.7% y-o-y increase.
CLMT announced a distributable income of RM89.2mil for the period Jan 1 to June 30, 2026 (1H26), 24.1% higher year-on-year.
“NPI for 1H26 rose 13.6% y-o-y to RM157.8mil. The resilient performance was primarily driven by stronger performance from most of our existing properties and income recognition from the industrial and logistics acquisitions completed in 2025,” CLMT said in a statement.
As at end-June 2026, CLMT’s retail occupancy remained stable at 93.2%.
Including its logistics and industrial properties, the overall portfolio occupancy stood at 94.4%.
CLMT’s retail portfolio achieved positive rental reversion of 11.6% for 1H26.
“At The Mines, an asset enhancement initiative is underway to upgrade spaces along the canal and introduce a vibrant marketplace on Level 1.
“Upon completion, it will feature a revitalised precinct with a curated mix of food and beverage offerings as well as improved shopper circulation that integrates the new social event spaces for a more immersive retail experience,” the REIT said.
CLMT maintained a well-spread debt maturity profile with an average term to maturity of 4.2 years.
Its year-to-date average cost of debt and gearing ratio were 4.21% and 38.5%, respectively. Also, 81% of its total borrowings are on fixed interest rates to mitigate exposure to interest rate movements.
Looking ahead, CLMT remains cautiously optimistic about its performance in 2026, underpinned by an expanded industrial and logistics portfolio.
“CLMT continues its efforts to expand its industrial and logistics footprint to build a quality, income-producing portfolio that delivers long-term sustainable returns for its unitholders,” it added.
