CapitaLand Mall Trust’s profits inch up 3.74% to $193.9m in H1

Thanks to Bedok Mall acquisition, AEI fueling topline.

With topline-boosting asset enhancement initiatives (AEI) and its Bedok Mall acquisition, CapitaLand Mall Trust (CMT) posted a marginal uptick in both its H1 and Q2 distributable profits.

According to a report by OCBC, CMT’s distributable income for H1 was $193.9m, reflecting a 3.7% YoY uptick. Gross revenue for the half-year climbed 7.3% YoY to $350.7m, with DPU inching up 1.5% YoY to 5.47 S cents.

CMT asserts in a media release that the gross revenue growth is thanks to contribution of S$29.1 million following the acquisition of Bedok Mall on 1 October 2015. CMT also enjoyed higher rental for IMM Building, Tampines Mall and Bukit Panjang Plaza, after completion of AEI in FY15. This was partly offset, though, by weak gross revenue from Funan, JCube, and RVM.

Meanwhile, CMT further showed resilience by posting a 3.6% YoY increase in shopper traffic in H1, while tenants’ sales psf per month edged up 2.3%. Occupancy at CMT’s malls was also stable at 97.9%.

However, CMT saw a continued moderation in its rental reversion trend as the increase in rental rates came in at 1.7% YoY for H1.

For 2Q16, CMT’s distributable income edged up 3.3% YoY to $97.1m, with DPU up 1.1% YoY to 2.74 cents.