KUALA LUMPUR (July 24): CapitaLand Malaysia Trust (KL:CLMT) posted a 15.2% jump in its second quarter net property income from the same quarter a year ago, as most of the malls within its portfolio recorded higher revenue as a result of positive rental reversions and higher occupancies.

CLMT's net property income for the second quarter ended June 30, 2024 (2QFY2024) rose to RM65.47 million from RM56.83 million in 2QFY2023, while gross revenue rose 8.5% to RM113.65 million from RM104.76 million. Gross revenue was also higher due to compensation income received amounting to RM3 million due to the early termination of a lease contract, its bourse filing showed.

Distributable income rose to RM33.27 million from RM28.64 million. The trust announced a distribution of 1.17 sen per unit, up from 1.06 sen in the same quarter last year, which raised its distribution per unit (DPU) for the first half of FY2024 to 2.36 sen, compared with 1.93 sen for the first half of FY2023. The DPU is paid half yearly.

The resulting dividend yield for CLMT is 7.02%, based on its last traded unit price of 65.5 sen. It paid 2.24 sen dividend per unit for the second half of last year.

For the first half of FY2024, the group's net property income rose 34.7% to RM129.4 million from the RM96.1 million it reported for the first half of FY2023. This came as gross revenue grew 23.1% to RM225.54 million from RM183.24 million. Distributable income for the first half of FY2024 rose to RM66.9 million from RM48.44 million in the corresponding period in FY2023.

CLMT attributed the improved earnings mainly to contribution from Queensbay Mall, which it acquired in March 2023, and better performances of Gurney Plaza, Sungei Wang Plaza, 3 Damansara and Valdor Logistics Hub. In the six-month period, the trust saw higher maintenance expenses which was partly offset by lower utilities costs, the results filing showed.

"Our proactive asset and lease management strategies have resulted in higher occupancies and positive rental reversions across most of our retail properties. The introduction of new retail concepts and tenant offerings as well as exciting shopper activation programmes have boosted footfall and tenant sales," said Tan Soon Chiang, the chief executive officer of CapitaLand Malaysia REIT Sdn Bhd, the manager of CLMT, in a separate statement.

“We will be embarking on the next phase of our asset enhancement initiatives (AEI) at Gurney Plaza to revitalise its tenancy mix following the refurbishment of its entrance driveway and the unit reconfiguration of Sports Direct & USC — a sports offering, in September 2023. Shoppers can look forward to new-to-market offerings and exciting retail concepts progressively when the AEI completes in 2H 2024.”

“On our new economy front, the construction work at Glenmarie Distribution Centre is on track to complete in 4Q2024. We will continue to actively seek investment opportunities in the logistics and industrial sectors with financial discipline, as part of our ongoing commitment to enhance the resilience and quality of our portfolio,” Tan said.

As at June 30, CLMT's retail occupancy stood at 92.3%. Including its two fully-leased logistics properties, CLMT's overall portfolio occupancy stood at 93.1%,

CLMT’s share price closed unchanged at 65.5 sen on Wednesday, giving the trust a market capitalisation of RM1.84 billion.