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

CapitaLand’s Singapore-focused retail REIT, CapitaLand Mall Trust (CMT), has reported a distribution per unit (DPU) of 2.88 cents for its 1Q 2019, up 3.6% year-on-year.

The REIT delivered year-on-year growth of 10.0% and 11.5% in gross revenue, and net property income respectively for the period.

CMT has attributed the growth to revenue contribution from Westgate, following induction of of the balance 70.0% interest in the property last November.

The REIT’s refurbished asset, Funan, has attained temporary occupation permit, and is expected to begin revenue contribution from 2H 2019.

As at 31 March 2019, CMT’s average cost of debt was 3.2%, and aggregate leverage was 34.4%.

The REIT’s portfolio currently features committed occupancy of 98.8%.

“The coming on stream of new retail space of about 1 million square feet, excluding Funan, in Singapore this year is expected to intensify competition among shopping malls”, the REIT warned in its statement.

“We will stay proactive in our asset and investment management, and continually evaluate opportunities to grow and enhance CMT’s portfolio”, it added.

Based on CMT’s closing price of SGD2.32 per unit on 23 April 2019, the annualised distribution yield for 1Q 2019 was 5.03%.

Books closure date is 3 May 2019 and the expected payment date for the distribution is on 30 May 2019.

CMT finished the trading day 1.7% higher from its previous close on the Singapore Exchange to end at SGD2.36.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.