UPDATE: CapitaLand Mall Trust reports 2Q19 net property income rose 10 percent

CapitaLand Mall Trust building in Singapore’s Bugis neighborhood.CapitaLand Mall Trust building in Singapore’s Bugis neighborhood.

This article was originally published on Tuesday, 23 July 2019 at 7:41 A.M. SGT; it has since been updated.

CapitaLand Mall Trust reported Tuesday its second quarter net property income rose 10.2 percent on-year to S$133.15 million after the acquisition of the 70 percent of Westgate mall it didn’t already own.

Gross revenue for the quarter ended 30 June increased 10.6 percent on-year to S$189.54 million, the trust said in a filing to SGX.

The distribution per unit (DPU) was 2.92 Singapore cents, up 3.9 percent form 2.81 Singapore cents in the year-ago period, the filing said, adding the annualized distribution yield was 4.5 percent based on the 22 July closing price of S$2.60 a unit.

Daiwa had forecast net property income of S$135.2 million on revenue of S$189.8 million, with a DPU of 2.87 Singapore cents.

CapitaLand Mall Trust had acquired the remaining 70 percent stake in Westgate in the fourth quarter of last year, while its Funan mall, which opened at end-June, is expected to contribute to earnings from the second half, the filing said.

“The contributions from Westgate and Funan are expected to anchor CMT’s steady financial performance while we embark on the rejuvenation of Lot One Shoppers’ Mall starting from the third quarter of 2019,” Tony Tan, CEO of CapitaLand Mall Trust Management Ltd. (CMTML), the trust’s manager, said in the statement.

But Tan had some words of caution.

“Against the backdrop of Singapore’s slowing economy, we remain cautious in our outlook,” Tan said. “Competition for the consumer wallet is expected to stay keen with the progressive opening of new malls, although the supply of new retail space is projected to taper off from
2020.”

The portfolio occupancy rate was 98.3 percent at end-June, the trust said.

For the first half, the trust reported net property income increased 10.9 percent on-year to S$273.25 million on gross revenue of S$382.26 million, up 10.3 percent on-year; DPU was 11.7 Singapore cents for the first half, up 3.8 percent on-year from 11.27 Singapore cents in the year-ago period, the filing said.

CapitaLand Mall Trust’s portfolio has 15 shopping malls in Singapore and it holds around 12.3 percent of CapitaLand Retail China Trust (CRCT).

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