CapitaLand Malaysia Trust Gurney Plaza REITsWeek

CapitaLand Malaysia Trust (CLMT) has declared lower distributions for its 1Q 2023, despite reporting higher revenue for the period.

The REIT has announced net property income of MYR39.2 million for the quarter.

This is an increase of 8.8% from the same period a year ago.

CLMT has attributed the increase to higher revenue contribution from the REIT’s properties, a recovery in retail sentiment, and contributions from Valdor Logistics Hub and the newly acquired Queensbay Mall.

Related: CapitaLand Malaysia Trust cleared to acquire Queensbay Mall

However, distributable income for 1Q 2023 was MYR19.8 million, a decrease of 3.1% from the same period a year ago, mainly due to higher utilities and interest costs, said the REIT.

Distribution per unit (DPU) for 1Q 2023 was 0.87 sen, a decrease of 8.4% from what was declared in 1Q 2022.

For 1Q 2023, the REIT achieved a positive retail rental reversion of 3.1%.

Its portfolio occupancy improved from 85.9% as at 31 December 2022 to 89.2% as at 31 March 2023.

The REIT’s gearing has increased notably from 36.2% in FY2022 to 44.3% as at 31 March 2023.

Accordingly, CLMT’s average cost of debt has increased to 3.58% from 3.24% in FY2022.

CLMT was last done on the Bursa Malaysia at MYR0.515, down by about 1% from its previous close.


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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.