Complete Property Market Updates of Singapore

April 30, 2008

CMT Q1 annualised DPU up 15%

Filed under: 1 — Propertymarketupdates @ 3:43 am

CAPITAMALL Trust (CMT) has announced a distribution per unit (DPU) of 3.48 cents for the first quarter ended March 31.

This represents, on an annualised basis, a DPU of 14 cents – 15 per cent higher than for the previous corresponding period – and a distribution yield of 4.02 per cent based on the unit price of $3.48 on Monday.

Pua Seck Guan, CEO of CMT manager CapitaMall Trust Management Ltd, said: ‘The top-line numbers achieved by CMT remains very strong, supported by robust rental renewals and multiple asset enhancement initiatives.’

While Mr Pua expects organic growth driven by asset enhancement programmes to continue to ‘take centre stage in the coming quarters’, he revealed that as at March 31, over 92 per cent of its forecast net property income for 2008 has already been locked in.

He added: ‘With a gearing of 35.3 per cent, we have a capacity to acquire at least $1.2 billion worth of assets through 100 per cent debt funding, without resulting in a change in our corporate rating of A2 assigned by Moody’s Investors Service. We will continue to actively pursue yield-accretive acquisition opportunities to grow our local target asset size to $8 billion by 2010.’

As at April 21, CMT had an asset size of about $5.9 billion.

CMT’s gross revenue for the first quarter came to $121.1million, an increase of $3.9 million or 3.4 per cent over its forecast.

Net property income of $84.7 million for the quarter exceeded forecast by 8.2 per cent or $6.4 million. CMT added that IMM and Bugis Junction outperformed forecasts by 11.5 per cent and 15 per cent respectively.

Rental renewal rates for the quarter registered growth of 10.4 per cent over preceding rental rates and 4.3 per cent over forecast rental rates.

For 2008, CMT said that a significant amount of asset enhancement initiatives will be in progress at various malls across its portfolio amounting to some $179.1 million in capital expenditure.

These include on-going works, such as the redevelopment project at Sembawang Shopping Centre, which commenced in Q107 and is expected to be completed by Q408, Lot One Shoppers’ Mall, which commenced in Q307 and is expected to be completed in Q408, and upcoming works such as the redevelopment of Jurong Entertainment Centre, as well as enhancement schemes at Bugis Junction and Plaza Singapura.

CMT said that vacancy voids may have a varying impact on operational costs in the coming quarters in 2008. As such, CMT has retained $5.5 million of its taxable income available for distribution to unitholders for the quarter.

CMT said that the retained taxable income would provide a sustainable pool of funds that would help negate the impact of fluctuating operational cash flows, thereby providing unitholders with stable 2008 quarterly distributions.

At the end of trading yesterday, CMT unit price was up five cents to close at $3.53 per unit.

Source : Business Times – 23 Apr 2008

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