Friday 29 Mar 2024
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KUALA LUMPUR (July 22): CapitaLand Malaysia Trust (CLMT) logged a 41.63% rise in net property income (NPI) to RM37.43 million for the second quarter ended June 30, 2022 (2QFY22), from RM26.43 million in the corresponding quarter last year, underpinned by retail sentiment recovery as tenants' businesses gradually normalised.

Distributable income more than doubled to RM21.58 million — or one sen per unit — from RM10.57 million in 2QFY21, while revenue rose 29.61% to RM68.32 million from RM52.71 million, the real estate investment trust (REIT) said in a filing.

For the first half ended June 30, 2022 (1HFY22), CLMT posted a 43.1% increase in NPI to RM73.49 million from RM51.34 million in the same period a year earlier.

Six-month distributable income jumped 131.54% to RM42.03 million — or 1.95 sen per unit — from RM18.15 million previously, while revenue was up 24.27% to RM135.92 million from RM109.37 million.

CLMT's manager, CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), said the group is optimistic about the retail sector's continued recovery, in view of the progressive ease in movement restrictions coupled with the reopened international borders.

"In 2QFY22, CLMT marked an important milestone in its diversification strategy with the proposed acquisition of a logistics property in Penang. This will pave the way for CLMT to build a more diversified and resilient portfolio," said CMRM chairman Lui Chong Chee.

Meanwhile, CMRM chief executive officer Tan Choon Siang highlighted that the 1.95 sen distribution per unit (DPU) for 1HFY22 was higher than the full-year DPU of 1.84 sen for FY21.

"Portfolio occupancy rate as at June 30, 2022 improved to 80.8% as all CLMT malls registered improvements in occupancies. Portfolio tenant sales per square foot in 2QFY22 exceeded pre-pandemic levels, notching an increase of 18.9% when compared to the average in 2019," added Tan.

He said the group is cautiously optimistic about sustaining the positive performance momentum in coming quarters and is closely monitoring the impact of inflation, labour shortages as well as rising interest rates on its tenants' businesses.

"To increase the resilience of CLMT's portfolio, we will continue to pursue yield-accretive investment opportunities in the industrial and logistics space as part of our diversification strategy towards increasing the proportion of non-retail assets in CLMT's enlarged portfolio to 20% over the next three years," he added.

CLMT also noted that CMRM has elected to apply the distribution reinvestment plan to the income distribution for 1HFY22.

"The dates of book closure and income distribution will be announced upon obtaining the necessary regulatory approvals," it said.

On June 7, CLMT announced that it proposed to buy industrial properties — 5.11 hectares of freehold land with building thereon — in Penang from Dynaciate Group Bhd for RM80 million to venture into the logistics sector.

CLMT units finished half a sen or 0.89% higher at 56.5 sen on Thursday (July 22), giving the REIT a market capitalisation of RM1.22 billion.

Edited ByS Kanagaraju
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