CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), has achieved a distribution per unit (DPU) of 9.241 cents for the financial year ended 31 December 2010, up 4.6 percent compared to the previous year.
This was attributed to the rental increases from new and existing leases, as well as to the half-year contribution from Clarke Quay, which was acquired in July 2010.
“We are pleased that CMT has delivered a good set of results for FY2010. On the back of better economic conditions, increased tourist arrivals and improved consumer confidence, we saw more optimism among our retailers,” said Mr. James Koh Cher Siang, Chairman of CMTML.
“This contributed to continued strong occupancy and higher rental rates at CMT’s malls in 2010. Although the outlook for the global economy in 2011 is mixed, Singapore’s economy is likely to be supported by Asia’s growth momentum and hence, the domestic retail sector is expected to remain buoyant this year.”
On the asset enhancement front, Mr. Siang said the company will enjoy an incremental annual net property income of about S$1.2 million this year, given the completion of the Raffles City Singapore project.
He noted that the asset enhancement works at JCube are progressing well, while asset enhancement works for The Atrium@Orchard are expected to begin this month.
“The asset enhancement project will link The Atrium@Orchard to Plaza Singapura and increase the retail net lettable area (NLA) by six-fold,” he said.
“Upon completion in end 2012, the combined retail NLA in the two buildings will be approximately 625,000 sq ft, almost equal to the size of ION Orchard. In 2011, we will also continue to focus on acquisitions of yield-accretive properties and selective participation in greenfield development projects.”