CapitaLand Mall Trust’s 2018 Full-Year Earnings: Steady Growth in Distribution Per Unit
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CapitaLand Mall Trust (CMT) has achieved a distributable income of S$108.1 million for the December quarter, up 5.1 per cent on the same period a year earlier. CMT’s manager, CapitaLand Mall Trust Management (CMTML), says full-year distributable income reach S$410.7 million, up 3.8 per cent year on year. CMTML chairman Richard R Magnus said the results were achieved through “proactive asset and capital management” and reflect the quality of CMT’s portfolio, underpinned by attractive locations and diverse tenant mix.
“Cognisant of the challenges ahead – which include slowdowns in the global and Singapore economies, uncertainty in the interest rate environment and competition from the completion of new shopping malls – we remain vigilant and will continually explore new ways to differentiate our malls from the competition and increase customer engagement.”
CMTML CEO Tony Tan said the portfolio was rejuvenated last year by through the sale of Sembawang Shopping Centre and redeploying the proceeds into acquiring the remaining interest in Westgate – a higher-yielding quality asset.
“During the fourth quarter, we completed the asset enhancement initiatives at Tampines Mall and Westgate, which are targeted at expanding their retail offerings and improving comfort and accessibility for visitors. In the same quarter, Plaza Singapura welcomed NomadX,
CapitaLand’s first multi-label concept store featuring digital sensors, ePayment systems and unmanned store technology. By immersing our physical retail space with digital technology, we are empowering our tenants to strengthen interactions with a new set of customers while getting to know our shoppers better,” said Tan.
“Through continual efforts to refresh CMT’s tenant mix and elevate the shopping experience, we ended the year with a high portfolio occupancy of 99.2 per cent.”
Tan said the Funan redevelopment continues its leasing momentum and is on track to open in the second quarter of this year.
“Including leases under active negotiations, the leasing for Funan has reached more than 80 per cent.”
Questions & Answers
Q.What initiatives did CMT undertake to improve its properties in the last quarter of the year?
What initiatives did CMT undertake to improve its properties in the last quarter of the year?
CMT completed asset enhancement initiatives at Tampines Mall and Westgate, aiming to expand retail offerings and improve visitor comfort and accessibility. Plaza Singapura also welcomed NomadX, a new multi-label concept store integrating digital technology into the physical retail space.
Q.How did CMT’s manager address the challenge of competition from new shopping malls?
How did CMT’s manager address the challenge of competition from new shopping malls?
The manager stated they remain vigilant and will continually explore new ways to differentiate their malls and increase customer engagement. They aim to refresh tenant mix and elevate the shopping experience to maintain their competitive edge.
Q.What was the strategy behind the sale of Sembawang Shopping Centre?
What was the strategy behind the sale of Sembawang Shopping Centre?
The strategy was to rejuvenate the portfolio by selling Sembawang Shopping Centre and redeploying the proceeds. These funds were used to acquire the remaining interest in Westgate, which is described as a higher-yielding quality asset.
Q.What is the current status of the Funan redevelopment project?
What is the current status of the Funan redevelopment project?
The Funan redevelopment continues its leasing momentum and is on track to open in the second quarter of this year. Including leases under active negotiations, the project has reached more than 80 per cent leasing.
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