CapitaMall's Q1 distributable income rises 8% to $62.6m

Friday, 17 April 2009 08:53
CapitaMall Trust, Singapore’s biggest property trust, said its distributable income climbed 8% in the first quarter after it added a property and completed improvements at two other malls, reported Bloomberg.
Distributable income rose to $62.6 million for the three months ended March 31, compared with S$58 million a year earlier, the trust said in a statement today to the Singapore stock exchange. Distribution per share fell to 1.97 cents a share from 3.48 cents a year earlier after it sold stock in a rights offer during the quarter, the statement said.
CapitaMall is more cautious on its outlook even after rental renewal rates rose 1.3% during the quarter. Retail sales have declined for five straight months in Singapore and the city-state’s government has estimated the economy may contract by up to an unprecedented 9% this year, raising concern shoppers will further curtail spending at the trust’s malls.
“The revenue outlook for CapitaMall will depend on the extent, depth and duration of the economic recession and financial uncertainties on CapitaMall’s tenants as well as demand for retail space,” Lim Beng Chee, chief executive officer of the trust’s manager, said in the statement.
CapitaMall has retreated 0.6% in Singapore this year. CapitaLand, Southeast Asia’s largest developer and the trust’s parent, has gained 11%, while the benchmark Straits Times Index rose 7.4% during the period. Today’s earnings were released before the start of trading.
During the quarter, the trust raised $1.23 billion by selling shares to existing investors to help repay some of its borrowings as the global financial crisis tightens the availability of credit.
Income during the quarter included rents from The Atrium@Orchard, a property located along Singapore’s Orchard Road shopping belt that CapitaMall bought on Aug 15. It also completed “asset enhancement initiatives” at Sembawang Shopping Centre and Lot One Shoppers’ Mall, the trust said.
For the year, CapitaMall has “locked in” more than 90% of 2008’s gross revenue, Lim said in the statement, citing its leases as of March 31.
The trust plans to start enhancement works at Jurong Entertainment Centre, a property that was closed in November, by the end of the year, CapitaMall said.
It’s also seeking to start work on integrating Atrium@Orchard with Plaza Singapura, a neighboring property also owned by the trust, by the end of 2010, the statement said.
Retail rents across Singapore fell 0.6% in the fourth quarter from the previous three months, a second straight decline, the Urban Redevelopment Authority said on Jan 23. The government agency is scheduled to release data for the three months ended March 31 later this month.