KUALA LUMPUR (April 14) CapitaLand Malaysia Mall Trust’s (CMMT) has reported a net property income (NPI) of RM60.6 million for the first quarter ended March 31, 2016 (1QFY16), up 13.1% from RM53.6 million a year ago.

Net profit rose 7.3% to RM41.05 million, from RM38.24 million in 1QFY15; while revenue increased 15.6% to RM93.64 million, from RM80.98 million.

CMMT’s manager, CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM), attributed the increase mainly to new contributions from Tropicana City Mall and Tropicana City Office Tower in Petaling Jaya that were acquired in July last year.

CMRM chief executive officer Low Peck Chen said that two assets accounted for 12.7% of NPI.

“Gurney Plaza (Penang) and East Coast Mall (Kuantan) also contributed significantly to the increase in our NPI, with higher rental rates achieved from new and renewed leases,” she said in a filing with Bursa Malaysia today.

“Despite the temporary impact of the nearby Mass Rapid Transit construction works on Sungei Wang Plaza’s shopper traffic, we are confident that the stable performance of the other malls in our income and geographically-diversified portfolio, will help cushion the effect and continue to provide stable returns for unitholders,” she added.

CMMT recorded a 7.2% increase in the distributable income for 1QFY16 to RM42.93 million, from RM40.03 million a year ago, according to its filing with Bursa Malaysia today.

The annualised distribution per unit (DPU) of 8.53 sen translates into an annualised distribution yield of 5.9%, based on CMMT’s closing price of RM1.45 per unit on April 13, 2016.

As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for 1QFY16, along with their DPU for 2QFY16, by August 2016, said CMRM.

Low said the group is committed to improving the shopping experience in its malls, and will ensure they remain relevant and attractive to shoppers.

“At Tropicana City Mall, we embarked on asset enhancement works, which include the creation of a new retail area on the ground floor adjacent to the office tower.

“As part of our ongoing efforts to further strengthen Gurney Plaza as Penang’s premier lifestyle shopping mall, we also plan to carry out reconfiguration works to create new retail areas on Basement 1 and Level 7 later this year,” said Low.

She then said that the group will continue to focus on optimising its retail mix, introducing new-to-market brands and concepts that appeal to shoppers, as well as sourcing for acquisition opportunities to add to its existing portfolio.

CMRM chairman David Wong said that the group expects consumer and business sentiments to remain cautious throughout the year, as concerns over rising costs of living persist.

“The operating environment is also likely to face headwinds arising from intensifying competition, as more retail space is scheduled for completion this year.

“However, we remain confident that CMMT’s portfolio of quality malls which are strategically located and largely focused on day-to-day necessity shopping, will continue to be resilient through the different economic cycles,” he said.

CMMT shares rose 2 sen (1.38%) today to RM1.47, for a market capitalisation of RM2.96 billion.