CapitaLand Mall Trust's Bugis+ (Photo: REITsWeek)CapitaLand Mall Trust's Bugis+ (Photo: REITsWeek)

CapitaLand Mall Trust announced on 22 July that it has achieved a distribution per unit (DPU) of 2.74 Singapore cents for its 2Q 2016, 1.1% higher than the 2.71 cents for 2Q 2015.

Gross revenue and net property income for the period saw year-on-year increases of 7.1% and 6.0% respectively mainly due to revenue contribution from Bedok Mall, which was acquired in October 2015, and higher rental revenue achieved for IMM Building, Tampines Mall and Bukit Panjang Plaza after asset enhancement initiatives.

However the Singapore-listed retail REIT noted that revenue figures were affected by the absence of income Rivervale Mall, which was divested in December 2015, and lower gross revenue from Funan DigitaLife Mall, as the mall wound down its operations for redevelopment.

“Backed by our portfolio of well-located shopping malls and extensive network of retailers, CapitaLand Mall Trust registered year-on-year increases of 3.6% and 2.3% in shopper traffic and tenants’ sales per square foot respectively”, said Wilson Tan, CEO of the REIT’s manager.

As at 30 June 2016, the REIT’s portfolio occupancy was at 97.9%, while its average cost of debt and aggregate leverage were 3.2% and 35.3% respectively.

Looking ahead, Tan pointed Funan DigitaLife Mall’s redevelopment as part of the REIT’s effort to enhance the attractiveness of its portfolio. The redevelopment is expected to achieve a return on investment of 6.5%.

The REIT’s books closure date is 1 August 2016 and unitholders can expect to receive their DPU for 2Q 2016 on 29 August 2016.

Units of CapitaLand Mall Trust are currently trading at SGD2.19.

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.