KUALA LUMPUR (Oct 24): CapitaLand Malaysia Trust (KL:CLMT) posted a 6.3% increase in its third quarter net property income (NPI) from last year’s corresponding period, underpinned by better NPI from Gurney Plaza, Queensbay Mall, East Coast Mall and Valdor Logistics Hub.

CLMT's NPI for the third quarter ended Sept 30, 2024 (3QFY2024) increased to RM61.99 million from RM58.32 million in 3QFY2023, while gross revenue grew 5.4% to RM109.24 million from RM103.64 million. Gross revenue was higher due to positive rental reversions and higher occupancies.

Distributable income went up 7.1% y-o-y to RM30.73 million from RM28.7 million. The real estate investment trust (REIT) announced a distribution of 1.07 sen per unit, up from 1.05 from last year, raising its distribution per unit (DPU) for the first nine months of FY2024 (9MFY2024) ended Sept 30 to 3.43 sen, compared with 2.98 sen in 9MFY2023. 

The annualised dividend yield for CLMT is 5.8%, based on its last traded unit price of 70 sen.

For the 9MFY2024, the REIT’s NPI rose 24% to RM191.44 million from RM154.39 million a year ago, while gross revenue grew 16.7% to RM334.77 million from RM286.88 million. Correspondingly, distributable income rose 26.6% to RM97.6 million from RM77.1 million.

CLMT attributed the improved earnings mainly to contributions from Queensbay Mall, which it acquired in March 2023, as well as better performances from CLMT’s retail portfolio and the Valdor Logistics Hub.

Year-to-date, CLMT’s retail properties registered positive rental reversions of 8.9%.

In a separate statement, Tan Choon Siang, chief executive officer of CapitaLand Malaysia REIT Sdn Bhd, the manager of CLMT, said the strong NPI was the result of a well-curated tenancy mix and timely rejuvenation of assets.

To ensure attractiveness to shoppers, the REIT underwent several asset enhancement initiatives (AEIs), including at Gurney Plaza that is on track to complete by year-end and set to usher in new-to-market offerings and refreshed retail concepts.

Tan also said 3 Damansara will be embarking on the next phase of AEI towards the end of 2024.

As for its industrial properties, Tan highlighted that the Valdor Logistics Hub has renewed tenancy lease at a higher rental rate, while the Glenmarie Distribution Centre — expected to complete retrofitting works in 4Q2024 — will start contributing to CLMT’s income in 2025.

As at Sept 30, CLMT's retail occupancy stood at 92.9%. Including its two fully-leased logistics properties, CLMT's overall portfolio occupancy stood at 92.9%.

The REIT’s gearing ratio stood at 42.1%, while its average cost of debt came in at 42.1%.

CLMT’s share price increased 0.5 sen to 70 sen on Thursday, giving the REIT a market capitalisation of RM2.01 billion.