Good bluechip REITS to monitor.
CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), is pleased to announce that CMT has achieved net property income (NPI) of S$418.2 million for the period 1 January to 31 December 2011 (FY2011). This is 4.8% higher than the NPI for Full Year 2010 (FY2010). Distribution per unit (DPU) for FY2011 was 9.371 cents, compared to FY2010 DPU of 9.24 cents. The better performance in FY2011 compared with FY2010 was mainly due to contributions from Clarke Quay and Iluma which were acquired on 1 July 2010 and 1 April 2011 respectively, as well as rental increases from new leases and renewal of existing leases.
On 29 February 2012, Unitholders can expect to receive their distribution of 1.281 cents per unit for the period 10 November to 31 December 2011. An advanced distribution of 1.022 cents per unit for the period 1 October to 9 November 2011 has already been paid to Unitholders on 6 January 2012. The combined distribution of 2.30 cents per unit for Fourth Quarter 2011 (4Q 2011) implies a distribution yield of 5.22% based on CMT’s closing price of S$1.75 per unit on 17 January 2012. The Books Closure Date is on 30 January 2012.
Mr James Koh Cher Siang, Chairman of CMTML, said, “We are happy to report that CMT ended FY2011 strongly with improved operational performance. We renewed 503 leases with a positive rental reversion of 6.4% and achieved a 6.3% year-on-year increase in tenant sales in our malls. The improved performance was underpinned by Singapore’s low unemployment rate, healthy domestic consumption and record-breaking visitor arrivals. Although the outlook for the global economy in 2012 is less certain and may affect consumer sentiment, CMT is well-positioned to ride out any downturn with our portfolio of well-located necessity shopping malls whose businesses have proven their resilience over time and economic cycles.”
Mr Simon Ho, CEO of CMTML, said, “Despite the current economic outlook, we are confident that CMT’s scale, strong retailer network and knowledge of tenant sales will stand us in good stead. In addition, leases due for renewal in 2012 were executed in 2009 in the throes of the global financial crisis at a relatively low rental reversion of 2.3%. Our ongoing asset enhancements such as those for JCube, Iluma and The Atrium@Orchard are expected to come to fruition and boost our rental income this year and in 2013. Besides commencing our asset enhancement works for Clarke Quay in the second quarter of 2012, we also intend to focus on executing our first greenfield development project, Westgate, located in Jurong, the largest Regional Centre in Singapore. Construction for the project commenced on 12 January 2012. We are targeting to complete and open the mall by end-2013.”