KUALA LUMPUR (Oct 16): CapitaLand Malaysia Mall Trust's (CMMT) net property income (NPI) rose 18% to RM59.8 million for the third quarter ended Sept 30, 2015 (3QFY15), from RM50.6 million a year ago, mainly due to new contribution from Tropicana City Mall and Tropicana City Office Tower, and higher contribution from East Coast Mall, following the completion of its two-year asset enhancement works.

Distributable income for 3QFY15 grew 10.5% to RM41.7 million, from RM37.7 million in 3QFY14.

CMMT's net profit for 3QFY15 jumped 46.9% to RM52.47 million, from RM35.71 million in 3QFY14; while revenue increased 16.7% to RM90.94 million, from RM77.91 million a year ago.

In a statement today, CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM), the manager of CMMT, said the annualised distribution per unit (DPU) of 8.25 sen translates into an annualised distribution yield of 5.9%, based on CMMT’s closing price of RM1.40 per unit yesterday (Oct 15).

"As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for the period from July 9 to Dec 31, 2015, by February 2016," it added.

For the nine months period (9MFY15), CMMT saw NPI rise 7.4% to RM165.81 million, from RM154.35 million a year ago.

Distributable income for 9MFY15 jumped 2% to RM120.48 million, from RM118.17 million in 9MFY14.

CMMT's net profit for 9MFY15, meanwhile, rose marginally to RM179.34 million, from RM178.78 million in 9MFY14; while revenue was up 7% to RM251.54 million, from RM235.1 million a year ago.

“While the Malaysian economy expanded 4.9% in 2QFY15, retail sales contracted 11.9%, following the implementation of the goods and services Tax. Looking ahead, the retail sales growth forecast for 2015 has been lowered to 3.1%, as the weak ringgit is expected to affect consumers’ purchasing power, due to higher costs of imported goods," said CMRM chairman David Wong Chin Huat in the statement.

"Despite the challenging environment, we are confident that CMMT’s portfolio of quality malls, which are strategically located and largely focused on day-to-day necessity shopping, will continue to remain resilient through different economic cycles, as they have done in the past,” he added.
 
CMRM's chief executive officer Low Peck Chen said as part of the group's strategy to achieve stronger positioning and better trade mix for Tropicana City Mall, the asset is currently undergoing tenant mix adjustments and is expected to grow income contribution upon its next tenancy renewal cycle.

CMMT (fundamental: 1.8; valuation: 0.65)'s shares closed unchanged at RM1.40 today, giving it a market capitalisation of RM2.83 billion.
 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)