CapitaMall Trust ups Q2 DPU after sale of Sembawang mall

Distribution per unit (DPU) at CapitaLand Mall Trust was up for the second quarter on a rise in net property income, the manager reported yesterday.

Unitholders can look forward to a DPU of 2.81 cents for the three months to June 30, a rise of 2.2 per cent on the same period a year earlier, while distributable income advanced 2.9 per cent to $100 million.

The retail Reit (real estate investment trust) lifted net property income by 2.8 per cent to $120.8 million, with gross revenue up 1.6 per cent to $171.4 million.

Portfolio occupancy stood at 98 per cent as at June 30, while the weighted-average lease expiry was 1.9 years. Net asset value ticked up to 2.01 cents, from 1.95 cents as at Dec 31, 2017.

CapitaLand Mall Trust “overcame soft market conditions to deliver another set of stable results” for the quarter, Mr Tony Tan, chief executive of the manager, said in a statement.

The rise in income came as Plaza Singapura, Bedok Mall, Bugis Junction and Tampines Mall drew in higher gross rents. Still, the manager noted the increase took a hit from lower occupancy and rental rates at JCube and Bukit Panjang Plaza.

There was also a drop in turnover after Sembawang Shopping Centre was divested during the quarter for $248 million to a joint venture comprising Lian Beng Group and the private investment firm of the Super Group’s Teo family.

Net proceeds from the sale went into repaying borrowings, which Mr Tan noted has led to “improved financial flexibility” for the trust and a lower gearing of 31.5 per cent, down from 33.5 per cent as at March 31.

DPU was up by 2 per cent to 5.59 cents for the half year. That was on the back of a 3.7 per cent increase in net property income to $246.4 million and a 1.7 per cent lift in gross revenue to $346.5 million.

CapitaLand Mall Trust has a portfolio of 15 malls in Singapore, including a 40 per cent stake in Raffles City Singapore, a 30 per cent holding in Westgate in Jurong and 90 out of 91 strata lots in Bukit Panjang Plaza.

Funan has been closed for redevelopment since July 2016. Meanwhile, Westgate is being renovated.

The book closure date for distribution is July 30, with the sum to be paid out on Aug 29.

CapitaLand Mall Trust units closed up two cents to $2.16 yesterday after the results were announced.

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