CapitaLand and KLCC trusts post improved 4Q profits


CapitaLand Malaysia Mall Trust (CMMT) recorded a 26.5% year-on-year (YoY) increase in profit to RM53.65 million for the fourth quarter (4Q) ended Dec 31, 2017, as the Gurney Plaza, Penang, and East Coast Mall in Kuantan turned in stronger performances on the back of higher rental income and gross turnover rent.

In an exchange filing to Bursa Malaysia yesterday, the real estate investment trust (REIT) noted the two malls’ performance partially mitigated the lower contributions from its Klang Valley-based shopping malls.

Gross revenue fell 1.6% (YoY) to RM92 million in 4Q due to negative rental reversions from its Sungei Wang assets as it continues to be affected by the closure of BB Plaza.

“Lower gross revenue was recorded for The Mines mainly due to lower rental rates and occupancy, while lower gross revenue in Tropicana City Property was mainly due to lower occupancy at the office tower and softer demand for promotional space at the mall,” CMMT said in its filing.

A revaluation of all its properties resulted in net revaluation surplus of RM16 million that was incorporated into 4Q numbers.

CMMT and its subsidiary (CMMT Group) reported a net fair value loss of RM11.8 million in its first six months. The latest net fair value gain of RM16 million has been incorporated into CMMT Group’s 4Q unaudited consolidated results for the period from Oct 1, 2017, to Dec 31, 2017.

In total, CMMT reported a net fair value gain of RM4.2 million for the financial year 2017. Meanwhile, KLCC REIT posted a net profit of RM345.52 million for the 4Q ended Dec 31, 2017, versus RM347.13 million net profit recorded a year ago for the same period.

Its 4Q revenue increased 2.1% YoY to RM352.08 million, largely boosted by the hotel segment.

Its five-star Mandarin Oriental Hotel completed the first phase of its guestroom renovations, comprising 157 Club Rooms and Suites as well as the Presidential Suite in July last year.

The 116 Deluxe rooms and Park Suites have also been included in its inventory from September 2017.

“The new offerings were well received and resulted in higher revenue and earnings for the hotel segment,” the trust noted in its exchange filing yesterday.