CapitaMall Trust 2Q2018 Results – Increasing DPU

CapitaMall Trust has released its 2Q2018 financial results. Both Gross revenue and Net Property Income has increased by 1.6% and 2.8% respectively despite the lack of income from Sembawang Shopping Mall due to its divestment some time back (Read more: CapitaLand Mall Trust 1Q2018 Financial Results and Divestment of Sembawang Shopping Mall ). Distribution per unit increased 2.2% for 2Q2018 as compared to 2Q2017. As a dividend investor, this is something I applaud CapitaMall Trust for.

At the point of writing, the share price of CapitaMall Trust currently stood at S$2.16. Comparing it with the Net Asset Value of CapitaMall Trust of $2.01 (as of 30 June 2018), the current share price is a slight premium over its Net Asset Value.

Even though the financial results are on the positive side, one thing noteworthy is that the shopper traffic for 1H2018 decreased by 2.4% Y-o-Y. Tenant sales for 1H 2018 also decreased by 0.2% Y-o-Y. Overall portfolio occupancy is 98% which I consider is still fairly high as compared to the average market occupancy of 92.5%. Read More