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CapitaMall Trust 4Q2016 Financial Results Resilient Under Current Economic Headwinds

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I have previously added more of CapitaMall Trust to my stock portfolio in November 2016 which I have blogged about (My Personal Analysis of Capitaland Mall Trust). CapitaMall Trust announces its 4Q 2016 or full year 2016 results on Friday, 20th January 2017.  The financial results are within my expectation. When I mean within my expectation, I do not expect CapitaMall Trust to outperform but to be resilient under current economic headwinds.

Here is a quick summary of the 4Q2016 results compared with 4Q2015. Gross revenue fell 6.1% and Net Property Income (“NPI”) fell by 7.6%. Distribution Per Unit (“DPU”) remains flat at 2.88 cents.

Gross Revenue 169,346 180,380 (6.1%)
Net Property Income 116,192 125,697 (7.6%)
Distributable Income 102,069 101,894 0.2%
Distribution Per Unit (“DPU”) (cents) 2.88 2.88 0%

If we compare the full year 2016 financial results with 2015 financial results, it does not seem so bad.

Gross Revenue 689,732 669,002 3.1%
Net Property Income 479,679 466,164 2.9%
Distributable Income 394,323 392,001 0.6%
Annualized Distribution Per Unit (“DPU”) (cents) 11.13 11.25 (1.1%)

CapitaMall Trust achieves 3.1% increase in Gross Revenue and 2.9% in Net Property Income which was mainly attributed to the acquisition of Bedok Mall and higher rental achieved for IMM Building, Tampines Mall and Bukit Panjang Plaza, after asset enhancement works. The increase was offset by lower gross revenue from Funan, as the mall ceased operations for redevelopment, and divestment of Rivervale Mall on 15 December 2015. You can judge from the full year results how resilient CapitaMall is and I am expecting higher revenue contribution once Funan reopens in 2018.

Dividend Yield

Based on the closing price of S$1.885 and an annualized dividend of 11.13 cents, the dividend yield is 5.9%. Not the highest yield REIT around but considerable decent and stable REIT with resilient malls at good locations.


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