CLMT sees 43% growth in NPI

by AUFA MARDHIAH/ pic credit:

CAPITALAND Malaysia REIT Management Sdn Bhd (CLMT) sees 43.1% growth in its net property income (NPI) to RM73.5 million compared to the same period last year.

The company said in an exchange filing today that in the second quarter of the year (2Q22), the company’s NPI grew 41.6% year-on-year to RM37.4 million — higher attribution contributed from Gurney Plaza, The Mines and East Coast Mall.

It also posted a distributable income of RM42 million for the first half of the year (1H22), a 131.5% growth from the same period of the previous year.

Its distribution per unit was 1.95 sen, also up 126.7% year-on-year — due to recovery in retail sentiment as tenants’ businesses gradually returned to normalcy.

CLMT’s portfolio occupancy rate also grew 80.8% for 2Q22 due to improved occupancies in all its malls. In terms of portfolio, tenant sales per sq ft, CLMT posted a growth of 18.9% in 2Q which exceeded pre-pandemic levels in 2019.

CLMT chairman Lui Chong Chee stated that the recovery of Malaysia’s retail sector in the first half of the year was due to festive spending and consumers’ pent-up demand.

“With the progressive easing of movement restrictions coupled with the reopening of international borders, we are optimistic that the sector’s recovery momentum will sustain throughout the year,” said Lui in a statement to the local bourse today.

In 2Q22, CLMT marked an important milestone in its diversification strategy with the proposed acquisition of a logistics property in Penang. This will pave the way for CLMT to build a more diversified and resilient portfolio,” he said in a statement.

Meanwhile, CLMT CEO Tan Choon Siang said CLMT has surpassed its full-year DPU of 1.84 sen in the financial year 2021 with 1.95 sen for 1H22.

“While we are cautiously optimistic in sustaining the positive performance momentum in the coming quarters, we are closely monitoring the impact of inflation, labour shortage and rising interest rates on our tenants’ businesses.

“To increase the resilience of CLMT’s portfolio, we will continue to pursue yield-accretive investment opportunities in the industrial and logistics space as part of our diversification strategy towards increasing the proportion of non-retail assets in CLMT’s enlarged portfolio to 20% over the next three years,” he said in the same statement.