COMMERCIAL PROPERTY, RETAIL | Staff Reporter, Singapore

CapitaLand Mall Trust NPI rose 11.5% to $140.1m in Q1

The increase was due to the completion of the acquisition of the balance 70% of the units in Infinity Mall Trust.

CapitaLand Mall Trust’s (CMT) net property income (NPI) of jumped 11.5% YoY to $140.1m in Q1 2019 from $125.65m in 2018, an announcement revealed. Revenue also grew 10% YoY from $175.16m to $192.72m.

The strong performance was primarily attributed to the completion of the acquisition of the balance 70% of the units in Infinity Mall Trust (IMT), which holds Westgate, on 1 November 2018. Upon the completion of the acquisition, IMT became a subsidiary of CMT and its results were consolidated at CMT Group. For Q1 2019, Westgate reportedly contributed $19.1m to the total gross revenue of the Group.

Also read: CapitaLand Mall Trust to buy remaining 70% stake in Westgate for $789.6m

“In addition, Bedok Mall and Tampines Mall generated higher gross revenue due to higher other income as well as higher gross rental income. The increase was partially offset by lower gross revenue from Sembawang Shopping Centre which was divested on 18 June 2018,” CMT explained in its financial statement.

Distributable income for Q1 2019 also inched up 7.4% YoY to approximately $106.29m, whilst distribution per unit (DPU) advanced 3.6% YoY to 2.88 cents. Based on CMT’s closing price of $2.32 per unit on 23 April 2019, the annualised distribution yield for Q1 2019 was 5.03%.

According to Tony Tan, CEO of CapitaLand Mall Trust Management (CMTML), the firm expects Funan, which will open in mid-2019 and is about 90% leased, to contribute progressively to CMT’s earnings from H2 2019.

“The coming on stream of new retail space of about 1 million sqft, excluding Funan, in Singapore this year is expected to intensify competition amongst shopping malls,” he explained.

On 4 April 2019, CMT’s wholly-owned subsidiary CMT MTN, issued US$300m fixed rate notes due 4 April 2029 at 3.609% per annum through its $3.5b Multicurrency Medium Term Note Programme. CMT MTN reportedly entered into swap transactions to swap the USD proceeds to $407.1m at a fixed interest rate of 3.223% per annum. The proceeds from this issuance have been used to refinance the existing bank borrowings of CMT Group.

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