CapitaLand Malaysia Trust increases FY 2024 distribution per unit by 11.5% to 4.65 sen through proactive portfolio management

Net property income rises 21.4% to RM263.9 million, marking CLMT’s highest NPI since listing Drives value creation with more than RM200 million in industrial and logistics acquisitions

Kuala Lumpur, January 23, 2025 -- CapitaLand Malaysia Trust (CLMT) achieved a strong distributable income growth of 21.0% to RM132.8 million for the period 1 January 2024 to 31 December 2024 (FY 2024) compared to FY 2023. Correspondingly, its distribution per unit (DPU) grew 11.5% year-on-year (y-o-y) to 4.65 sen. CLMT’s net property income (NPI) rose 21.4% y-o-y to RM263.9 million, marking its highest NPI since listing in 2010. Its resilient performance was mainly driven by full-year contribution from Queensbay Mall and higher revenue from its existing properties. This contributed to a 2.4% increase in the total valuation of CLMT’s eight properties, bringing the value to RM5.1 billion as at 31 December 2024, as appraised by independent valuers. 

Summary of CLMT’s results

For the period 1 October 2024 to 31 December 2024 (4Q 2024), NPI was RM72.5 million, 15.0% higher than the same period a year ago. The increase was largely attributed to higher revenue contributions from the majority of CLMT’s properties, supported by stronger retail sentiment. In 4Q 2024, the fully leased Glenmarie Distribution Centre completed retrofitting works and commenced income contribution. 4Q 2024 distributable income increased 7.7% y-o-y to RM35.2 million while DPU grew 2.5% to 1.22 sen.

Mr Tan Choon Siang, CEO of CMRM, the manager of CLMT

Mr Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management Sdn. Bhd. (CMRM), the manager of CLMT, said: “2024 was an exciting year and we are pleased to share that CLMT has become a constituent of FTSE Bursa Malaysia Emas Index[1]. Our focus on executing our investment strategies, alongside proactive asset and capital management, has delivered positive financial returns to Unitholders. Our portfolio continued to perform well with occupancy exceeding 90% and most of our retail properties achieving positive rental reversions. Tenant sales per square foot (sq ft) and shopper traffic also maintained their upward momentum in FY 2024, underscoring the resilience and appeal of our assets. Additionally, the completion of the asset enhancement initiatives at Gurney Plaza is expected to contribute positively to CLMT’s performance this year.”

“In FY 2024, we further strengthened CLMT’s portfolio with over RM200 million of acquisitions[2] in the industrial and logistics space. Upon completion of these acquisitions in 2H 2025, the contribution from these assets will further enhance CLMT’s income resilience. Looking ahead, we remain steadfast in our commitment to delivering sustainable returns through ongoing portfolio optimisation, while continuing to pursue growth opportunities with financial discipline,” added Mr Tan.

Proactive portfolio management

As at 31 December 2024, CLMT’s retail occupancy remained stable at 92.0%. Including its two fully leased logistics properties, the overall portfolio occupancy stood at 92.8%. CLMT’s retail properties registered positive rental reversions of 11.3% for FY 2024. Same-store shopper traffic increased by 4.7% y-o-y, while tenant sales per sq ft grew 4.2% y-o-y.

Disciplined capital management

In line with its prudent and agile capital management strategy, CLMT continued to diversify its funding sources. It secured new facilities totalling RM416.5 million in FY 2024 to finance new acquisitions and working capital requirements as well as to refinance a loan early for interest savings and extend its maturity. In addition, CLMT refixed interest for a RM500 million loan that was due and refixed another RM693 million loan early at a lower interest rate. As at 31 December 2024, CLMT has a debt headroom of approximately RM916 million. The FY 2024 average cost of debt was 4.51% and its gearing ratio was 41.3%. To manage exposure to interest rate movements, 85% of its total borrowings are on fixed interest rates.  

Environmental and social initiatives

In 4Q 2024, CLMT achieved 3-star rating in the 2024 GRESB Real Estate Assessment for standing investments in its maiden participation. The Mines and 3 Damansara achieved full Green Mark GoldPLUS certifications by the Building and Construction Authority of Singapore. With that, close to 50% of CLMT’s portfolio based on gross floor area has achieved green certification. In addition, CLMT has converted a RM50 million facility into a sustainability-linked loan, bringing its sustainable finance to RM801.8 million, which is approximately 36.8% of its total borrowings.  

Through the #GivingBersama 4.0 initiative, CLMT and CapitaLand Investment Malaysia, with the support from CapitaLand Group’s philanthropic arm, CapitaLand Hope Foundation, contributed RM200,000 worth of daily necessities and educational supplies to approximately 2,600 beneficiaries from orphanage homes, schools and low-income families in Penang, Klang Valley, Pahang and Johor.

In 4Q 2024, the fully leased Glenmarie Distribution Centre completed retrofitting works and commenced income contribution

Distribution details

As CLMT’s DPU is paid out on a half-yearly basis, Unitholders can expect to receive a DPU of 2.29 sen for the period from 1 July 2024 to 31 December 2024, payable by March 2025. The Board of CMRM has elected to apply the Distribution Reinvestment Plan to the income distribution for 2H 2024, enabling Unitholders to choose to receive the distribution fully in cash or to reinvest part of the distribution in new units. The dates of book closure and income distribution will be announced upon obtaining the necessary regulatory approvals.

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Notes
[1] CLMT has been independently assessed and satisfied the requirements to become a constituent of FTSE Bursa Malaysia Emas Index following the FTSE Bursa Malaysia Index Series semi-annual review in December 2024.

[2] In December 2024, CLMT entered into a sale and leaseback agreement to acquire a freehold modern automated logistics property in Selangor, for RM180.0 million. Currently under construction, the acquisition of the automated warehouse is expected to be completed in 2H 2025. In February 2024, CLMT announced the acquisition of three freehold industrial factories in Nusajaya Tech Park, Johor for RM27.0 million which is expected to be completed in 2H 2025. 

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