CapitaLand Malaysia Mall Trust’s (CMMT) net profit for the third quarter ended Sept 30, 2018 (3Q18) fell 21.26% year-on-year (YoY) to RM31.56 million from RM40.08 million a year ago due to lower revenue.
Revenue for the quarter fell 7% YoY to RM86.15 million due to lower occupancy at Sungei Wang, The Mines and 3 Damansara malls and downtime from asset enhancement works at Sungei Wang as well as lower rental rates at The Mines.
The decrease was mitigated by better performance from Gurney Plaza and higher rental contribution upon completion of asset enhancement works at East Coast Mall.
In an exchange filing yesterday, CMMT said property operating expenses for 3Q were RM34.4 million, an increase of RM1.8 million YoY mainly attributed to the increase in current year’s property assessment fees at Gurney Plaza, higher utility expenses due to the electricity tariff surcharge, higher property maintenance and reimbursable staff costs.
The net property income for 3Q of RM51.7 million was 13.9% lower than 3Q17. With e-commerce and shopping mall supply rising, the operating environment remains challenging.
The group has embarked on asset enhancement initiatives at Sungei Wang and The Mines to increase their appeal and a mobile application was introduced in 3Q to keep abreast of shopper lifestyle changes, it noted.