How did Funan Mall closure affect its figures?
CapitaLand Mall Trust Management Limited reported that its NPI fell by 2.9% YoY, from $479.6m to $478.2m in 2017.
Further, its gross revenue decreased by 1.1% YoY, falling from $689.7m to $682.4m in 2017. This was due to Funan Mall, which stopped its operations for redevelopment from July 2016, and Bedok Mall, which had lower occupancy and rental rates achieved. However, said losses were partially offset by higher rental in IMM, Jcube and Clarke Quay.
CMT’s property operating expenses fell by 2.8% YoY, from $210m to $$204.2m, mainly caused by higher property tax, which was able to offset lower utilities expenses.
Management fees at $45.1m were $0.4m or 1.0% higher than FY 2016.
Finance costs for FY 2017 of $104.1m were $2.2m or 2.1% lower than FY 2016. This was mainly due to refinancing of MTNs of $100m and $150m in March 2017 and September 2017 respectively at lower interest rates and utilisation of the proceeds from the divestment of VSRT to repay the bank borrowings in November 2017.
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