Forget Singapore, if you want growth go to Malaysia

Check out how CapitaMalls Malaysia was able to increase rental rates by 6.7% with a nearly-full occupancy rate of 98.7%.

In a release, CapitaMalls Malaysia REIT Management Sdn. Bhd., the manager of CapitaMalls Malaysia Trust, announced its third quarter unaudited financial results from 1 July 2011 to 30 September 2011 (“3Q 2011”).

For the quarter under review, CMMT recorded a distribution per unit (“DPU”) of 1.98 sen, which is 26.9% higher than the DPU of 1.56 sen for the third quarter of 2010 (“3Q 2010”). The DPU of 1.98 sen translates to an annualised distribution yield of 6.1%, based on CMMT’s closing price of RM1.28 per unit on 12 October 2011. Excluding the contribution from Gurney Plaza Extension in 3Q 2011, CMMT achieved DPU growth of 3.8% year-on-year. As CMMT’s DPU is paid out twice a year, unitholders can expect to receive their DPU for 3Q 2011 in early 2012.

For 3Q 2011, CMMT achieved distributable income of RM29.7 million (40.6% higher than 3Q 2010) on the back of net property income of RM41.1 million (35.6% higher than 3Q 2010) and gross revenue of RM57.8 million (33.3% higher than 3Q 2010).

Mr Kee Teck Koon, Chairman of CMRM, said, “In our first quarterly results with comparative figures since our listing on 16 July 2010, we are pleased to report a strong set of results, boosted by the contribution from Gurney Plaza Extension in 3Q 2011, the acquisition of which was completed on 28 March 2011. Since then, we have announced another acquisition, of East Coast Mall in Kuantan, which is expected to be completed by year-end. We continue to actively look for acquisition opportunities as part of our growth strategy, to enhance unitholder value.”

“Malaysia’s economy grew 4.0% in the second quarter of this year, while private consumption grew even faster at 6.4%. As Malaysia’s economy is projected to grow between 5.0% and 5.5% for the whole of this year, we are confident that CMMT is well-positioned to benefit from this growth as our malls are essentially focused on necessity and day-to-day shopping, which should prove resilient despite the uncertain economic climate.”

Ms Sharon Lim, CEO of CMRM, said, “For the quarter, we continued to deliver our forecast with a nearly-full occupancy rate of 98.7% across our portfolio, as well as rental renewal increases of 6.7%. Our asset enhancement works at Gurney Plaza are progressing well and on track to be completed by end of this year, and will start contributing to our income from next year onwards.”

“We are also pleased to have obtained the approvals of the Securities Commission of Malaysia and Bursa Malaysia last month to proceed with the acquisition of East Coast Mall, and we are looking forward to conclude the acquisition by the end of the year. When completed, we will have a portfolio of four well-performing malls in the key urban centres of Penang, Kuala Lumpur, Selangor and Kuantan. East Coast Mall is expected to contribute over RM20.0 million of net property income a year to our existing portfolio. This will further strengthen CMMT’s position as
the largest “pure-play” shopping mall REIT in Malaysia, as well as provide further income and geographical diversification.”