CapitaMall Trust (CMT) will distribute 2.13 Singapore cents per unit to unitholders in the second quarter – down 39 per cent from a year ago due to a higher number of units as a result of a recent rights issue.
Excluding the adjustment for new units through the rights issue, its distribution per unit would have risen about 15 per cent.
All in, the trust had S$67.9 million to distribute in the second quarter, up nearly 16 per cent on-year.
The properties under CapitaMall Trust are doing relatively well, despite what appears to be a disappointing headline number for the trust’s latest results.
Its gross revenue for the three months to June rose 10.4 per cent on-year to S$138.6 million, while net property income increased 12.2 per cent to about S$93.8 million.
CMT said the improved performance was due to asset enhancement works and positive rental reversions over the past six months. This includes the acquisition of the Atrium@Orchard and works completion at Sembawang Shopping Centre.
Going forward, CMT said its outlook would depend on the pace of recovery in the global economy, but it remains confident it can ride the downturn better due to its strategically located malls which continue to draw shoppers.
It also sees opportunities to improve its tenant mix with the new developments springing up along the Orchard Road shopping belt.
Lim Beng Chee, CEO of CapitaMall Trust, said: “Typically, a foreign new concept would like to test their concepts in Orchard Road which is more centrally located. They can then replicate some of these concepts that are relevant to the suburban malls to some of our malls.”
It plans to go ahead with asset enhancement works for Jurong Entertainment Centre by end-2009. CMT noted that its retailers are now more confident than they were last year and its malls are close to full occupancy.
The trust said it remains committed to maintaining an annual distribution payout of 100 per cent.
Source : Channel NewsAsia – 24 Jul 2009