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CapitaLand Mall Trust’s 3Q DPU up by 1.3% to 3.10 cents after releasing part of distributable income retained in 1H

Felicia Tan
Felicia Tan • 3 min read
CapitaLand Mall Trust’s 3Q DPU up by 1.3% to 3.10 cents after releasing part of distributable income retained in 1H
Unitholders can expect to receive their DPU for 3QFY2020 on Nov 19.
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The manager of CapitaLand Mall Trust (CMT) has reported distribution per unit (DPU) of 3.10 cents for 3QFY2020 ended September, some 1.3% higher than the DPU of 3.06 cents a year ago.

Distributable income for the quarter rose 1.2% y-o-y to $114.3 million, which includes the release of $36.4 million or about 78% of the $46.4 million of income retained in 1HFY2020.

Gross revenue for 3QFY2020 declined 25.3% y-o-y to $150.3 million mainly due to the rental waivers granted to eligible tenants amounting to some $29.5 million, as well as lower rental on gross turnover and other income.

Property operating expenses fell 19.4% y-o-y to $45.8 million primarily due to lower property tax and property management fees due to the lower gross revenue and net property income (NPI), property management reimbursables, as well as lower marketing, utilities and maintenance expenses.

To that end, NPI decreased by 27.6% y-o-y to $104.4 million.

For the nine-month period ended September, DPU stood at 6.06 cents, 31.6% lower y-o-y.

Distributable income for the period dropped 31.5% y-o-y to $224.0 million.

Gross revenue for the nine months fell 19.7% y-o-y to $468.7 million, mainly due to rental waivers granted amounting to some $106.0 million. The lower figures were slightly mitigated by the commencement of Funan in June 2019, which contributed some $40.3 million to the group.

Property operating expenses year-to-date fell 10.9% y-o-y on lower property management fees.

Accordingly, NPI for the nine-month period dropped 23.2% y-o-y to $320.8 million.

During the same period, CMT extended a rental relief package of some $183.4 million comprising rental waivers, property tax rebates and cash grants. In addition, the trust waived turnover rent for qualifying tenants to “demonstrate its commitment” towards a sustainable retail ecosystem.

“We are encouraged by the steady recovery in the operational performance of CMT malls and the broader market since Phase 2 reopening,” says Tony Tan, CEO of the manager.

“As at Sept 30, 2020, almost all of CMT’s tenants have resumed operations and portfolio occupancy remained stable at 98.0%. Portfolio shopper traffic and tenants’ sales per square foot per month for 3QFY2020 have recovered to about 60% and 89% of last year’s levels respectively. Suburban malls saw tenants’ sales recovering to around 97% of the level a year ago. We will continue to focus on operational recovery while staying vigilant in adhering to safe management measures,” he adds.

Looking ahead, Tan says the manager maintains a “cautious outlook” for the near term and that CMT will stay the course to “preserve the vitality of the retail ecosystem” while mitigating the negative impact on the “current challenging operating environment”.

See also: CapitaLand Commercial Trust files court application to sanction trust scheme; Moody's downgrades CapitaLand Mall Trust to A3

Unitholders can expect to receive their DPU for 3QFY2020 on Nov 19.

Units in CMT closed 1 cent lower or 0.5% down at $1.91 on Oct 21.

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