Mall upgrades boost CapitaMall Trust's Q1 rental earnings
The Straits Times
| April 20, 2013
Renovations and upgrading works at three malls boosted
rental returns and helped push up earnings at CapitaMall Trust (CMT) in the
first quarter.
Gross revenue grew 14.8 per cent from $155.2 million last year
to $178.2 million, while net property income was up 15.5 per cent at $125.1
million for the three months to March 31.
Its distributable income came in at $85.3 million, up 11.3
per cent on the $76.6 million recorded in the same period last year.
First-quarter distribution per unit (DPU) rose 7 per cent to
2.46 cents from the same period last year.
CMT reported that its annualised distribution yield was 4.42
per cent based on its closing price of $2.26 per unit yesterday.
Unit-holders can expect to receive their DPU on May 30, said
the real estate investment trust.
CapitaMall Trust Management chairman Danny Teoh said the
refurbishments at JCube, Bugis+ and The Atrium@Orchard boosted the
first-quarter performance.
Among the 15 malls in its portfolio, 11 of them accounted
for the $2.3 million increase in gross revenue due to higher rentals for new
and renewed leases.
IMM was the only mall in the portfolio that recorded a lower
gross revenue as it is still undergoing asset enhancement works since May last
year.
CMT also reported $53.1 million in property operating
expenses in the quarter, up $6.2 million or 13.2 per cent from the same period
last year.
Renovations at the three malls accounted for more than half
of the operating expenses, although tax payments also contributed.
CMT fully redeemed $300 million in two-year retail bonds in
February and will redeem a further $107.4 million convertible bonds in July.
Mr Wilson Tan, the chief executive of the CapitaMall Trust
Management, said the firm will start renovating the Bugis Junction mall this
quarter.
It has also signed up two tenants for the space formerly
occupied by hypermart Carrefour in Plaza Singapura, Mr Tan added.
The repositioning exercise at IMM is progressing well with
50 outlet brands secured.
Earnings per unit climbed to 2.82 cents in the first quarter
over the previous year while net asset value per unit rose marginally from the
fourth quarter last year to $1.67.
CMT units closed down two cents at $2.26 yesterday.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg
