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Stellar Results at CapitaMall Trust

Ser Jing - Shopping for CapitaMall Trust's First Quarter Results (picture) CapitaMall Trust (SGX: C38U), or CMT, our sunny island’s first and largest real estate investment trust, saw a 9.1% increase in its gross revenue year-on-year to S$182.4 million for third quarter of 2013 (3Q 2013).  The increase was mainly due to higher rental income from JCube, Bugis+ and The Atrium@Orchard, after completion of their respective asset enhancement initiative.

The net property income grew 12.9% to S$126.5 million as compared to 3Q 2012. The distributable income of S$88.8 million 3Q 2013 is 9.7% higher than the previous year. The distribution per unit (DPU) of 2.56 Singapore cents for 3Q 2013 is a 5.8% increase over previous year’s 2.42 Singapore cents.

As of 30 September 2013, gearing ratio of CMT is at 34.8% and average cost of debt is at 3.4%. The average term to maturity of the debt is 3.6 years. The portfolio has a high occupancy rate of 99.5%.

Mr Wilson Tan, Chief Executive Officer of CapitaMall Trust Management Limited, the manager of CMT, said, “We are pleased to report that CMT has delivered a good set of financial results in the third quarter. For the first nine months of 2013, our tenants’ sales increased 2.8% and shopper traffic grew 4.0% year-on-year. Going forward, we will commence asset enhancement works at Tampines Mall in the first quarter of next year, which includes adding new lettable space and rejuvenating the mall. This additional space is expected to yield a return on investment of about 8.0% upon stabilisation. We will also continue to actively consider new opportunities to create good value for unitholders.”

The shares last changed hands at $2.00 on Wednesday. With the net asset value at S$1.71 as of 30 September 2013, the price-to-book ratio translates to 1.17. The annualised distribution yield is at 5.08%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.