CMT posts 3.3% rise in Q2 distributable income to S$97.1m

CAPITALAND Mall Trust (CMT) on Friday reported a 3.3 per cent rise in its second-quarter distributable income to S$97.1 million, lifted by higher revenue.

Distribution per unit (DPU) for the three months ended June 30, 2016, was 2.74 Singapore cents.

Revenue in Q2 came in at S$170.9 million, up 7.1 per cent year on year, mainly due to a contribution of S$14.5 million from Bedok Mall which was acquired on October 1, 2015, and higher rental achieved for IMM Building, Tampines Mall and Bukit Panjang Plaza, after completion of asset enhancement initiatives in FY2015.

This was partially offset by lower gross revenue from Funan, as the mall winds down its operations for redevelopment, and RVM, which was divested on December 15, 2015, the group said.

Property operating expenses for the quarter were up 9.4 per cent to S$54.8 million, mainly due to Bedok Mall.

Net property income rose 6 per cent to S$116.1 million for the quarter.

The group said in its outlook that it has a strong portfolio of quality shopping malls which are mostly well-connected to public transportation hubs and are strategically located either in areas with large population catchments or within Singapore's popular shopping and tourist destinations.

"This, coupled with the large and diversified tenant base of the portfolio, will contribute to the stability and sustainability of the malls' occupancy rates and rental revenues. Going forward, the manager of CMT will continue to focus on sustaining DPU growth," it said.