CapitaMall Trust DPU Increased by 4.8% in 3QFY19

CapitaMall Trust currently makes up 11% of my stock portfolio. On 21st October 2019, CapitaMall Trust announced a decent set of 3QFY19 financial results. Gross revenue increased by 17.9% to S$201.1 million. Net Property Income (“NPI”) increased by 17.6% to S$144.2 million. The most important of all, Distribution Per Unit (“DPU”) increased by 4.8% to 3.06 cents.

The increase in gross revenue was mainly due to the acquisition of the balance 70% interest in Westgate in November 2018 and the commencement of operations at Funan. There may be slight impact to gross revenue in the subsequent quarters as Lot One Shopper’s Mall commence its rejuvenation works in 3QFY19. The rejuvenation works are expected to complete by 2H2020.

One thing noteworthy is that even though shopper traffic increase by 1.3% year on year, tenant sales fell by 1.3% year on year.

3QFY19 Financial Results

3QFY19
(S$’000)
3QFY218
(S$’000)
Change
Gross Revenue 201,111 170,527 17.9%
Net Property Income 144,222 122,680 17.6%
Distributable Income 112,973 103,542 9.1%
Distribution Per Unit (“DPU”) (cents) 3.06 2.92 4.8%

Occupancy Rates

In the last quarter, occupancy rate stood at 99.2%. In this quarter, the occupancy rate improved to 98.9%. As of 30th September 2019, the occupancy rate for Funan reached 98.7% which is an excellent piece of news to me.

Debt

Aggregate leverage increased slightly to 34.4% as compared to 34.2% in the last quarter. This is still considered relatively healthy.

Current Dividend Yield

Based on the distribution per unit of 11.5 cents and current price of S$2.62, this translates to a dividend yield of 4.39%.

The REIT is currently trading above its Net Asset Value (NAV) of S$2.08. The current price of S$2.62 is 26.0% above premium to its NAV.

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