The manager of CapitaLand Mall Trust (SGX: C38U) (CMT) announced on Thursday morning a net property income (NPI) of S$104.4 million for the quarter ended 30 September (3Q 2020), a 27.6% drop year-on-year.
The drop in NPI was mainly due to lower gross rental income arising from rental waivers for tenants of S$29.5 million due to Covid-19, as well as lower gross turnover and other income.
Distributable income for the quarter was at S$114.3 million and distribution per unit (DPU) at 3.10 cents.
Year-to-date distributable income was S$224.0 million, with the release of S$36.4 million, or about 78% of the S$46.4 million of taxable income available for distribution retained in 1H 2020. YTD DPU was down 31.6% year-on-year, at 6.06 cents.
The operational performance of CMT malls have been recovering steadily with operations resumed for almost all of CMT’s tenants and portfolio occupancy stable at 98%. Portfolio shopper traffic and tenant sales per square foot per month for 3Q 2020 have recovered to about 60% and 89% of last year’s levels respectively. Tenant sales for suburban malls have also recovered to around 97% of the level last year.
The outlook remains cautious for the near term and CMT will continue to direct efforts “towards rendering targeted relief support to tenants, sustaining healthy occupancy levels through proactive lease management and extending consumer outreach by leveraging technology”, said Mr Tony Tan, CEO of CMT’s manager.
As at 30 September, CMT’s average leverage was 34.4% with an average cost of debt of 3.1%.
CapitaLand Mall Trust (CMT) is the largest retail REIT in Singapore with a market capitalisation of S$7.1 billion as at 30 September 2020. CMT owns and invests in quality income-producing assets which are used, or predominantly used, for retail purposes primarily in Singapore.
CMT’s 15 quality shopping malls, which are strategically located in the suburban areas and downtown core of Singapore, comprise Tampines Mall, Junction 8, Funan, IMM Building, Plaza Singapura, Bugis Junction, JCube, Raffles City Singapore (40.0% interest), Lot One Shoppers’ Mall, 90 out of 91 strata lots in Bukit Panjang Plaza, The [email protected], Clarke Quay, Bugis+, Bedok Mall and Westgate. As at 30 September 2020, CMT owns 10.8% interest in CapitaLand Retail China Trust, the first China shopping mall REIT listed on SGX-ST in December 2006.