CMMT’s NPI plunges 61.5% in 2Q20

by NUR HANANI AZMAN/ pic credit:

CAPITALAND Malaysia Mall Trust’s (CMMT) net property income (NPI) plunged 61.5% to RM19.36 million in the second quarter ended June 30, 2020 (2Q20) from RM50.33 million a year ago, mainly due to rental waivers and rental reliefs granted to affected tenants during the various phases of the Movement Control Order (MCO).

Gross revenue fell 41.2% to RM49.88 million from RM84.85 million previously, while distributable income plummeted 98% to RM616,000 from RM30.87 million last year.

Distribution per unit (DPU) was at 0.03 sen for 2Q20 versus 1.51 sen the year prior, CMMT’s manager CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM) said in a statement yesterday.

For the first half of the year (1H20), NPI slipped 43% to RM58.72 million from RM103.08 million the year before.

Distributable income sank 68.5% to RM20.76 million in 1H20 from RM65.82 million last year, while DPU was at 1.01 sen against 3.22 sen previously.

“CMMT’s financial performance in 1H20 was impacted mainly by the rental reliefs given to affected tenants over the various phases of the MCO. Portfolio occupancy as at June 30, 2020, declined to 88.3%,” CMRM CEO Low Peck Chen said.

“Amid the slowdown, we have signed new leases representing about 30% of the net lettable area that is due for renewal this year, and are in advanced negotiations for the remaining major expiring leases.”

To date, more than 90% of CMMT’s tenants have reopened and resumed normal trading hours, CMRM chairman David Wong added.

“While there has been a gradual return in shopper footfall, the recovery of Malay- sia’s retail sector is still uncertain as consumer sentiment remains cautious,” he said.

CMMT is managed by CMRM — a joint venture between Singapore-listed Capita- Land Ltd, one of Asia’s largest diversified real estate groups, and Malaysian Indus- trial Development Finance Bhd.

Its portfolio includes Gurney Plaza in Penang, Sungei Wang in Kuala Lumpur, 3 Damansara and Tropicana City Office Tower in Petaling Jaya, The Mines in Seri Kembangan and East Coast Mall in Kuantan, Pahang.

Low said the trust will be applying the Distribution Reinvestment Plan (DRP), which was approved by unitholders at the last AGM, to the income distribution of 1H20.

Unitholders who choose to participate in the DRP will receive their 1H20 income distribution in a combination of new CMMT units and cash.

“The cash conserved through the DRP would be used for CMMT’s working capital and capital expenditure requirements,” she said.

Editor’s note: The headline has been changed to reflect the accuracy of the story.