CapitaLand Mall Trust reports 1Q19 net property income rose, beating Daiwa forecast

CapitaLand Integrated Commercial Trust's Funan mall in SingaporeCapitaLand Integrated Commercial Trust's Funan mall in Singapore

CapitaLand Mall Trust reported Wednesday its first quarter net property income rose 11.5 percent on-year to S$140.10 million on the acquisition of the 70 percent of Westgate mall it didn’t already own. The results beat a forecast from Daiwa.

Gross revenue for the quarter ended 31 March was S$192.72 million, up 10 percent on-year, the trust said in a filing to SGX.

The distribution per unit (DPU) for the quarter was 2.88 Singapore cents, up 3.6 percent from 2.78 Singapore cents in the year-ago quarter, CMT said.

Daiwa had forecast net property income of S$134.1 million on revenue of S$188.5 million, with a DPU of 2.79 Singapore cents.

CMT said the Westgate mall acquisition, completed in November, contributed S$19.1 million to gross revenue, while Bedok Mall and Tampines Mall also saw higher revenue. That was partially offset by the divestment of Sembawang Shopping Centre in June 2018, it added.

Based on the unit’s closing price of S$2.32 on 23 April, the annualized distribution yield for the first quarter was 5.03 percent, CMT said.

In the outlook, Tony Tan, CEO of CapitaLand Mall Trust Management, the REIT’s manager, pointed to contributions ahead from the expected opening of Funan mall in mid-2019; he said the mall was around 90 percent leased.

But he added some words of caution.

“Amidst slowing down of the global and Singapore economies, we remain cautious in our outlook. The coming on stream of new retail space of about 1 million square feet (excluding Funan) in Singapore this year is expected to intensify competition among shopping malls,” Tan said in the statement.

The portfolio occupancy rate was at 98.8 percent at end-March, CMT said.

CMT’s portfolio has 15 shopping malls in Singapore.


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