PETALING JAYA: Mall operator CapitaLand Malaysia Mall Trust (CMMT) posted a 21% drop in net profit to RM41.54mil for its third quarter Sept 30, 2016 from RM52.47mil in the previous corresponding period, while revenue during the quarter increased to RM93.51mil from RM90.94mil a year earlier.
In a filing with Bursa Malaysia yesterday, the company said the higher revenue was mainly driven by full quarter contribution from Tropicana City Property (TCP) upon its acquisition in the third quarter of 2015 and better performance from Gurney Plaza (GP), as well as East Coast Mall’s higher rental rates from new and renewed leases.
Earnings were however offset by lower contribution from Sungei Wang Plaza (SWP), largely due to negative rental reversions as the mall was temporarily affected by the ongoing Mass Rapid Transit (MRT) works and closure of BB Plaza, said CMMT.
“CMMT has incurred RM11.2mil of capital expenditure during the quarter. This includes the upgrading of mall network infrastructure and tenancy works.
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For the nine-months period ended Sept 30, 2016, net profit dropped to RM125.36mil from RM179.34mil in the previous corresponding period, while revenue grew to RM279.16mil from RM251.54mil a year earlier. “Overall, distributable income to unit holders for the financial period was RM128.5mil, an increase of RM8mil or 6.6% against year-to-date 2015,” CMMT said.
Looking forward, the company said the scheduled completion of new retail supply towards the end of 2016 is expected to intensify the competition level for the retail sub-sector.
“While SWP’s net property income is temporarily being affected by the ongoing MRT works nearby, the mall will stand to be a long-term beneficiary once the Bukit Bintang Central MRT station located close to the mall becomes operational, which is expected to be in the second half of 2017.
“Despite challenging operating conditions, the manager is confident that the steady performances of CMMT’s portfolio of quality assets located in key urban centres across Malaysia are able to provide both income and geographical diversification to unitholders.”
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