CapitaMall Trust (CMT), a wholly-owned unit of CapitaLand Limited, has delivered steady Q3 results, with gross revenue in the third quarter climbing 6 percent to $148.2 million.
The strong Q3 results were supported by higher rents from its mall, as well as contributions from Clarke Quay, which it acquired in July. Higher rental rates for new and existing leases from other malls also contributed to the rest of the increases.
“Growing tourist arrivals, supportive domestic demand and the resultant pick-up in consumer confidence will ensure that the retail market remain positive for the rest of the year,” said James Koh, chairman of CMT.
The trust’s distributable income rose 0.3 percent to $75.2 million, while distribution per unit (DPU) hit 2.36 cents.
Meanwhile, the occupancy rate of its portfolio reached 99.6 percent in September, slipping from 99.8 percent in December last year.
“CMT now has $840 million of cash and can invest $1.28 billion in assets before reaching 40 percent gearing,” said Wong Yan Ling and Regina Lim, analysts at Standard Chartered; “We think management will seek development projects as these provide yield on cost of 6-6.5 percent compared with typical acquisition yield of 5-5.5 percent.”