18 minutes
PETALING JAYA: CapitaLand Malaysia Mall Trust (CMMT) posted a net profit of RM192,000 in the second quarter ended June 30, compared with a net loss of RM10.15 million a year ago, on the absence of a fair value loss of investment properties.
Its revenue decreased 41.2% year-on-year to RM49.88 million from RM84.85 million mainly due to significant rental waivers and rebates given to tenants who fell under the category of non-essential services across all the malls during the various phases of the movement control order (MCO), lower car park and marcom income as well as lower recovery of utilities during the MCO period.
CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM), the manager of CMMT, said the net property income (NPI) for Q2’20 of RM19.4 million was 61.5% lower than Q2’19.
For the six month period (H1’20), its net profit fell 12.8% to RM19.46 million from RM22.33 million last year, while its revenue decreased 28% year-on-year to RM124.41 million from RM172.75 million.
In H1’20, its NPI of RM58.7 million was 43% lower than the same period last year, mainly attributed to the rental waiver and rental relief granted to affected tenants over the various phases of Malaysia’s MCO. Distributable income for H1’20 was RM20.8 million and distribution per unit (DPU) was 1.01 sen.
CMRM chairman David Wong said to date, more than 90% of CMMT tenants have reopened and resumed normal trading hours.
“While there has been a gradual return in shopper footfall, the recovery of Malaysia’s retail sector is still uncertain as consumer sentiment remains cautious. We will continue to monitor the situation closely and remain committed to ride out this difficult period with our tenants. Our focus is on stabilising the portfolio through proactive asset and lease management to build greater resilience in CMMT’s retail ecosystem, in line with the long-term interest of unitholders.”
CMRM CEO Low Peck Chen said amid the slowdown, the group has 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.
“We have also introduced a new supermarket operator at The Mines and a new high-end cosmetics retailer at Gurney Plaza to refresh their tenant mix.
“The ongoing asset enhancement initiative at Gurney Plaza to add a contemporary food hall and strengthen the mall’s position as Penang’s premier lifestyle destination is expected to contribute positively to CMMT’s performance after its completion in Q4’20. To help accelerate digital adoption among retailers and reach out to more shoppers, CMMT will continue to leverage CapitaStar and roll out attractive online marketing and promotional campaigns to increase shopper engagement.”
