HIGHER gross revenue from five malls has contributed to CapitaMall Trust (CMT) achieving a 25.5 per cent year-on-year surge in distributable income to $76.5 million for its fourth quarter ended Dec 31, 2009.
This in turn led to a 24.4 per cent surge in distribution per unit (DPU) to 2.4 cents for the three months.
The quarter’s DPU brought the total DPU for the 2009 full year to 8.85 cents, translating to a distribution yield of 4.97 per cent based on CMT’s closing price of $1.78 per unit yesterday.
Q4 gross revenue rose by 4.2 per cent to $140.1 million as five of CMT’s malls completed enhancement works and operating expenses fell.
For the year ended Dec 31, distributable income rose 18.3 per cent to $281.97 million while gross revenue grew 8.2 per cent to $552.7 million.
As at Dec 31, CMT’s occupancy weighed in at 99.8 per cent for its portfolio – which includes malls such as Junction 8, Tampines Mall and Plaza Singapura – up from 99.7 per cent as at Dec 31, 2008.
CMT has also commenced asset enhancement initiatives at Jurong Entertainment Centre and Raffles City, which are slated for completion in Q1 2012 and end-2010 respectively.
CMT is projecting an 8 per cent return on investment on its $200.32 million capital expenditure. The new Jurong Entertainment Centre will include an Olympic-sized ice skating rink.
Meanwhile, CMT is also working on reconfiguring the basement of Raffles City and constructing a new underground link which will add 12,180 square feet of net lettable area. Sixty-three per cent of this area has already been taken up.
Simon Ho, CEO of CapitaMall Trust Management Limited (CMTML) said yesterday: ‘We will be actively on the look-out for malls to buy . . . but we will be disciplined in our approach.’
He noted that the properties have to be yield-accretive and the income stream has to be sustainable.
CMT is also upbeat that the retail industry will benefit this year as the economy continues to pick up.
‘The improving economy and the opening of the two integrated resorts in 2010 should have a positive impact on the retail sector,’ said CMTML chairman James Koh.
Unitholders will receive the Q409 DPU on Feb 26.
Source: Business Times, 23 Jan 2010