CapitaMall Trust profit surges 4.3% to S$112.1m

Thanks to JCube and Bugis+.

According to OCBC, CapitaMall Trust’s (CMT) 3QFY12 results exceeded our expectations. NPI and distributable income grew by 4.3% and 4.6% YoY to S$112.1m and S$80.9m respectively, mainly due to contributions from JCube which commenced operations in Apr and Bugis+ which became fully operational in Aug.

Here's more from OCBC:

While DPU was flat YoY at 2.42 S cents, we note that it was partially due to the retention of S$5.9m capital distribution as opposed to a release of S$6.2m in prior year. For 9MFY12, NPI was up 4.0% to S$332.3m whereas DPU was up 0.4% to 7.10 S cents. This forms 77.6% and 76.1% of full-year NPI and DPU projections respectively.

CMT’s occupancy remained largely stable at 98.4% (98.6% in 2Q), despite a 4.6ppt drop QoQ at IMM building as a result of repositioning of the mall. This was mainly helped by stronger take-up rates at Bugis+ (98.5% vs. 97% in 2Q) and The
Atrium@Orchard.

According to management, over 90% of the total space at the latter was committed, with the retail space on track to open in early Nov. CMT also updated that the asset enhancement initiative (AEI) for Block C of Clarke Quay was completed and retail spaces there were fully operational.

For YTD,6.1% positive rental reversions were achieved, largely unchanged from 6.4% seen in 1H.

Looking ahead, we believe CMT is likely to sustain its growth profile, given the smooth execution of its AEIs and strong leasing activities. The development of Westgate, of which CMT has 30% stake, is also expected to start contributing to its income by end- 2013. We now revise our assumptions to incorporate the better-than-expected results.