CapitaLand’s retail REIT records 6.7% fall in 3Q 2016 DPU
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CapitaLand Mall Trust has posted a DPU of 2.78 Singapore cents for its 3Q 2016, a year-on-year fall of 6.7% compared to the 2.98 cents achieved in the corresponding period of 2015.
Gross revenue for the period improved by 4.9% to SGD170 million (USD121 million) while its net property income of SGD119.5 million represents an increase of 5.5% over the SGD113.3 million recorded in 3Q 2015.
This was mainly due to a contribution of SGD14.5 million from Bedok Mall which was acquired in October 2015, higher rental revenue achieved for IMM Building, Tampines Mall, and Bukit Panjang Plaza after asset enhancements, and higher occupancy at Clarke Quay.
However distributable income for 3Q 2016 was SGD98.4 million, 4.7% lower than 3Q 2015.
The distributable income for 3Q 2015 included the release of SGD8.0 million taxable income retained in 1Q 2015, and excluding this release, the distributable income for 3Q 2016 would have been 3.3% higher year-on-year, said the Singapore-listed retail REIT.
“Despite uncertainties in the macroeconomic environment and challenging retail conditions in Singapore, CapitaLand Mall Trust’s portfolio occupancy rate as at 30 September 2016 remained high at 98.6%”, said Wilson Tan, CEO of the REIT’s manager.
“For the first nine months of 2016, the REIT also registered year-on-year growth of 2.9% and 1.2% in shopper traffic and tenants’ sales per square foot respectively”, he added.
The REIT’s aggregate leverage as at 30 September 2016 was at 35.4%, up slightly from 35.3% in the previous quarter, while portfolio weighted average lease expiry (WALE) was at 2.0 years by gross rental income.
Units of CapitaLand Mall Mall Trust finished the trading day about 0.5% lower from its previous close on the Singapore Exchange to end at SGD2.11.
Questions & Answers
Q.Why did the DPU fall for CapitaLand Mall Trust in 3Q 2016 despite improved gross revenue and net property income?
Why did the DPU fall for CapitaLand Mall Trust in 3Q 2016 despite improved gross revenue and net property income?
The distributable income for 3Q 2016 was lower than 3Q 2015. This was because the previous year included a release of SGD8.0 million taxable income retained from an earlier quarter.
Q.What factors contributed to the increase in CapitaLand Mall Trust's gross revenue and net property income for the period?
What factors contributed to the increase in CapitaLand Mall Trust's gross revenue and net property income for the period?
Bedok Mall's acquisition contributed SGD14.5 million. Higher rental revenue from IMM Building, Tampines Mall, and Bukit Panjang Plaza after enhancements, along with increased occupancy at Clarke Quay, also helped.
Q.How did CapitaLand Mall Trust's portfolio perform in terms of occupancy, shopper traffic, and tenant sales per square foot?
How did CapitaLand Mall Trust's portfolio perform in terms of occupancy, shopper traffic, and tenant sales per square foot?
The portfolio occupancy rate remained high at 98.6% as of 30 September 2016. For the first nine months, shopper traffic grew by 2.9% and tenants' sales per square foot increased by 1.2% year-on-year.