CMT has announced a 4Q 2014 DPU rise of 5.1% year-on-year.

Heavyweight Singapore-listed Retail REIT CapitaMalls Trust (CMT) (SGX:C38U) has announced a distributable income of S$85.3 million for the period 1 January to 31 March 2013. This represents a climb of some is 11.3 percent when compared to the S$76.6 million for the same period in 2012.

CapitaMalls Trust Bugis+
On the completion of AE works at Bugis +, adjoining property Bugis Junction will now be rejuvenated from 2013 onwards.

Distribution per Unit (DPU) for the period stands at of 2.46 cents, an increase of a 7 percent from the 2.30 cents for 1Q 2012. This translates to an annualised distribution yield of 4.42 percent based on CMT’s closing price of S$2.26 per unit on 19 April 2013.

CMT’s gross revenue for the quarter came in at S$178.2 million, a 14.8 percent increase over the S$155.2 million for 1Q 2012. Net Property Income (NPI) was S$125.1 million, a 15.5 percent increase over the S$108.3 million for the corresponding quarter in 2012. In 1Q 2013, tenants’ sales recorded a year-on-year increase of 2.4 percent. During the quarter, 170 leases were renewed with a positive reversion of 6.2 percent over preceding rental rates contracted three years ago. CMT’s portfolio occupancy rate recorded 98.3 percent as at 31 March 2013.

Mr Danny Teoh, Chairman of CMTML, said, “CMT has performed well in first quarter of 2013. We are harvesting the fruits of our completed asset enhancement works at JCube, Bugis+ and The Atrium@Orchard, all of which have been trading well since the completion of the works. The portfolio’s new and renewed leases also contributed to the revenue growth.”

Commenting on further AE initiatives Mr Wilson Tan, CEO of CMTML, said, “We continue to identify good value creation opportunities in our asset portfolio. We will soon start our asset enhancement works at Bugis Junction in the second quarter. This project is expected to contribute a return on investment of about 9.0 percent upon stabilisation. We have also committed the space formerly vacated by Carrefour at Plaza Singapura to two new tenants.”

Asset enhancement works for Bugis Junction will commence in the second quarter of 2013. The AEI will involve the recovery of close to 70,000 sq ft of space from one of Bugis Junction’s anchor tenants. However CMT has not elaborated which anchor tenant this is. REITsWeek understands that it would be either Cold Storage supermarket which occupies a major part of the basement, or BHG, a department store that occupies several floors in the building.

CMT has assured investors that the vacated space will be occupied by specialty stores but has not elaborated on who these tenants are or whether they have committed to a lease. The projected capital expenditure for renovations at Bugis Junction is S$35.0 million with a target return on investment of 9 percent once completed. The AEI is expected to be completed by 3Q 2014.

Unit of CMT currently trade at S$2.27 on the SGX, up about half a percentage point from the last closing price.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.