CapitaLand Malaysia Trust’s 1Q 2024 distribution per unit rises 36.8% to 1.19 sen
Underpinned by quality acquisitions and strong retail performance
Summary of CLMT’s results
|
1Q 2024 |
1Q 2023 |
Change (%) |
Gross revenue (RM’000) |
111,884 |
78,489 |
42.5 |
Net property income (RM’000) |
63,981 |
39,242 |
63.0 |
Distributable income (RM’000) |
33,624 |
19,805 |
69.8 |
Distribution per unit (sen) |
1.19 |
0.87 |
36.8 |
Kuala Lumpur, 24 April 2024 – CapitaLand Malaysia Trust (CLMT) increased distribution per unit by 36.8% to 1.19 sen for the period 1 January 2024 to 31 March 2024 (1Q 2024) compared to the same period last year. Distributable income for 1Q 2024 was RM33.6 million, which was 69.8% higher than the RM19.8 million in 1Q 2023.
CLMT’s gross revenue grew 42.5% year-on-year to RM111.9 million in 1Q 2024. The significant increase was mainly due to the full quarter revenue contribution from Queensbay Mall, higher occupancies and positive rental reversions. Net property income for 1Q 2024 was RM64.0 million, up 63.0% from the same period a year ago.
In 1Q 2024, CLMT maintained healthy rental reversions at +9.1% and strong occupancy for its retail portfolio which drove same-store revenue growth in the quarter. Retail occupancy increased from 88.3% in 1Q 2023 to 92.4% this quarter. Including the two logistics properties which are fully leased, CLMT’s overall portfolio occupancy improved from 92.6% as at 31 December 2023 to 93.1% as at 31 March 2024. Tenant sales per square foot in 1Q 2024 also grew 16.0% year-on-year, while shopper traffic on same-store basis was up 8.6% year-on-year.
Mr Tan Choon Siang, CEO of CapitaLand Malaysia REIT Sdn. Bhd. (CMRM), the manager of CLMT, said: “CLMT had a solid quarter in 1Q 2024, achieving strong performance from our retail assets through our proactive asset management. As part of our ongoing efforts to enhance our retail offerings, we have recently completed refurbishment works at the entrance driveway of Gurney Plaza, improving both the appearance and accessibility of the mall. We have introduced a wider range of dining options on the lower ground floor at 3 Damansara and later this year, expect to welcome an active lifestyle brand, occupying approximately 24,000 square feet, to the ground floor. These new additions to our portfolio provide a glimpse of the refreshed tenant mix and mark the beginning of the exciting improvements to our retail portfolio that will unfold throughout the year.”
In 1Q 2024, we announced the accretive acquisition of three industrial properties in Johor that is expected to contribute positively to CLMT’s earnings upon completion in 4Q 2024. As we press ahead with our portfolio reconstitution strategy, we will continue to strengthen our balance sheet through disciplined capital management. We will also take proactive measures to mitigate the impact of rising costs and remain prudent in managing our expenses.
In line with its commitment to prudent capital management, CLMT has a well-spread debt maturity profile, with an average term to maturity of 3.2 years. As at 31 March 2024, CLMT maintained a gearing ratio of 42.1% with a year-to-date average cost of debt of 4.39%. 86% of its total borrowings have been locked in at fixed rates to mitigate exposure to interest rate movements.
Shopper engagement initiatives