SINGAPORE (Oct 21): The manager of CapitaLand Mall Trust (CMT) has announced distribution per unit (DPU) of 3.06 cents for the 3Q19 ended September, some 4.8% higher than DPU of 2.92 cents a year ago.
Distributable income for 3Q19 was 9.1% higher at $113.0 million, compared to $103.5 million in 3Q18.
3Q19 gross revenue jumped 17.9% to $201.1 million, from $170.5 million a year ago.
The increase was mainly due to the completion of the acquisition of the remaining 70.0% interest in Westgate on Nov 1, 2018, and the opening of Funan after a three-year redevelopment on June 28, 2019.
Total gross revenue contribution from Westgate and Funan was $18.8 million and $12.5 million respectively for 3Q19.
Property operating expenses climbed 18.9% during the quarter to $56.9 million, mainly due to the Westgate stake acquisition and the reopening of Funan’s retail and office components in June.
Consequently, CMT recorded net property income (NPI) of $144.2 million in 3Q19, some 17.6% higher than NPI of $122.7 million a year ago.
As at end-September, cash and cash equivalents stood at $392.2 million.
“The opening of three major malls this year, including Funan, has intensified the competition for consumer dollars,” says Tony Tan, CEO of the manager. “For CMT to continue to deliver sustainable returns to unitholders, we will be looking out for value creation and portfolio reconstitution opportunities.”
Tan adds that rejuvenation of Lot One Shoppers’ Mall is underway, which will see new features including an expanded public library and a reformatted cinema rolled out progressively from 2H20.
Units in CapitaLand Mall Trust closed 1 cent higher at $2.65 on Monday, before the results announcement.