CapitaMall Trust property Plaza SingapuraCapitaMall Trust property, Plaza Singapura

Singapore-listed retail REIT CapitaMall Trust (CMT)(SGX:C38U) posted a distribution per unit (DPU) of 2.57 Singapore cents for its 1Q 2014, about 4.5% higher than the 2.46 cents than the corresponding period from a year ago.

The rise in DPU came on the back of a 5.8% climb in gross revenue for the REIT which saw total takings of SGD164.7 million for the quarter, up from SGD155.6 million from a year ago. Correspondingly, net property income saw a 5.3% increase to SGD114.3 million from 108.5 million.

The management of CMT has attributed its performance in the quarter to stellar occupancy levels of 98.8% across all its malls. This has allowed the REIT to renew 172 leases in the quarter at rental rates averaging 6.2% higher than three years ago.

The REIT has also emphasised its prudence in keeping gearing and average cost of debt modest at 35.1% and 3.5% respectively.

Moving forward, the REIT expects impending asset enhancement initiatives at Tampines Mall, Bugis Junction and IMM building to further bolster revenue figures in the coming quarters. IMM for example will be undergoing renovation works to increase the number of tenants.

Based on CMT’s closing price of SGD1.99 per unit on 22 April 2014, the distribution yield stands at 5.24%. Unitholders can expect to receive their 1Q 2014 DPU on 30 May 2014.

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.