CMT’s second-quarter distributable income rose 10.2% to S$87.7m

Tenant sales have held up nicely.

In a release, CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), announced that CMT’s distributable income of S$87.7 million for the period 1 April 2013 to 30 June 2013 (2Q 2013) is 10.2% higher than the S$79.6 million for the same period in 2012 (2Q 2012).

The 2Q 2013 distribution per unit (DPU) of 2.53 cents represents a 6.3% increase over the 2.38 cents for 2Q 2012. This brings CMT’s DPU for the period from 1 January 2013 to 30 June 2013 (1H 2013) to 4.99 cents, exceeding the DPU of 4.68 cents for the corresponding period in 2012 (1H 2012) by 6.6%.

Unitholders can expect to receive their 2Q 2013 DPU on 29 August 2013. The annualised distribution yield is 5.08%, based on CMT’s closing price of S$2.00 per unit on 18 July 2013. The Books Closure Date is on 29 July 2013.

Mr Danny Teoh, Chairman of CMTML, said, “For the first half of 2013, our tenants’ sales have continued to grow despite the uncertainty in the economic outlook and challenges. Our tenants’ sales have increased 3.3% over the first half of last year, and shopper traffic increased 4.8% over the same period year-on-year. We are well positioned to deliver steady operational performance as our malls are strategically located, catering predominantly to necessity shopping, and supported by a huge population catchment.”

Mr Wilson Tan, CEO of CMTML, said, “We are pleased that CMT has delivered good performance in the second quarter of 2013. The completed asset enhancement works at JCube, Bugis+ and The Atrium@Orchard last year, together with the rental rates achieved from the portfolio’s new and renewed leases, were the major drivers to the revenue growth. We will continue to focus on active lease management, successful execution of on-going asset enhancement initiatives and active capital management. We will also seek new opportunities to create good value for unitholders.”

CMT’s gross revenue grew 10.4% year-on-year to S$182.8 million for 2Q 2013, while net property income increased 12.2% compared to 2Q 2012.

For 1H 2013, CMT’s gross revenue grew 12.6% year-on-year to S$361.0 million, while net property income increased 13.8% compared to 1H 2012. During this period, we renewed 411 leases with a positive growth of 6.4% over preceding rental rates contracted three years ago. CMT’s portfolio registered a high occupancy rate of 99.1% as at 30 June 2013.

On 2 July 2013, CMT fully redeemed the outstanding S$98.25 million convertible bonds due 2013 and the legal mortgage over The Atrium@Orchard has been fully discharged and released. All 14 properties held directly by CMT are unencumbered. This further improves CMT’s financial capacity and flexibility.

CMT registered a gearing ratio of 34.9% and average cost of debt of 3.4% as at 30 June 2013.

"Asset enhancement works for Bugis Junction have commenced in the second quarter of 2013. We have received strong leasing interest for the new retail space. The projected capital expenditure forthis AEI is S$35.0 million, with a target return on investment of 9.0%. The AEI is expected to be completed in the third quarter of 2014. Phase 1 of the asset enhancement works will be completed in 4Q 2013," revealed CMT.

"As part of IMM Building’s repositioning as a value-focused mall, the Manager has completed phase 1 to house 51 outlet stores. We will continue to explore the next phase of development to house more outlet stores," it added.