CMT’s Q3 distributable income jumps 23.3%

Unitholders will receive the Q3 distribution of 2.35cents on Nov26

CAPITAMALL Trust (CMT) yesterday posted a net property income of $94.5 million for the third quarter ended Sept 30. This is 8.8 per cent more than a year ago.

Higher net property income was driven by an increase in gross revenue, from the purchase of The Atrium@Orchard and the completion of asset enhancement works at Sembawang Shopping Centre.

Distributable income rose 23.3 per cent from last year to $74.9 million.

Despite the higher earnings, CMT’s distribution per unit (DPU) in Q3 was 2.35 cents – down 35.4 per cent from the 3.64 cents a year ago. This reflects the larger unit base from a rights issue early this year.

Adjusting for the rights issue, the DPU in Q3 last year would have been 1.91 cents. This would have translated to a 23 per cent year-on-year growth.

Unitholders will receive the Q3 distribution of 2.35 cents on Nov 26. On an annualised basis, the DPU is 9.32 cents, representing an annualised yield of 5.27 per cent based on the closing unit price of $1.77 on Wednesday.

Notwithstanding the economic slowdown, CMT managed to record positive rental reversions from January to September. Across its portfolio, rental rates have risen 1.8 per cent over preceding rates typically committed three years ago.

CMT’s portfolio occupancy rate as at Sept 30 was 99.6 per cent, just 0.1 percentage point lower than nine months ago.

‘Recent economic data indicate that the worst may be over,’ said chairman of trust manager CapitaMall Trust Management, James Koh. ‘With the clear but modest recovery, we expect retail sales in the upcoming months to be supported by festive spending.’

CMT, together with CapitaCommercial Trust, will start on asset enhancement works at Raffles City in Q4 2009. The initiative will cost $33.23 million, and is expected to contribute positively to CMT’s income when works are completed in Q4 2010.

Preparation for asset enhancement works at Jurong Entertainment Centre is also on track, CMT said.

The counter lost four cents yesterday to close at $1.73.

Source: Business Times, 23 Oct 2009