CapitaLand Malaysia Trust posts 4.2% increase in 1H 2025 distribution per unit

Resilient performance driven by positive retail rental reversions and income contribution from a logistics property

July 23, 2025 -- CLMT's stronger operating performance was driven by higher revenue across most of its properties due to positive rental reversions as well as income recognition from Glenmarie Distribution Centre. 

Summary of CLMT’s results

Kuala Lumpur, 21 July 2025 – CapitaLand Malaysia Trust (CLMT) announced a distributable income of RM71.9 million for the period 1 January 2025 to 30 June 2025 (1H 2025), 7.4% higher than the RM66.9 million for the same period last year. The distribution per unit (DPU) for 1H 2025 grew 4.2% year-on-year (y-o-y) to 2.46 sen. 

Net property income (NPI) for 1H 2025 increased by 7.3% y-o-y to RM138.8 million, primarily driven by higher revenue across most of its properties due to positive rental reversions as well as income recognition from Glenmarie Distribution Centre which commenced in January 2025. Excluding a one-off compensation of RM3 million recorded in 1H 2024 from the early termination of a lease contract, NPI for the period grew 9.8% y-o-y.  

Ms Yong Su-Lin, CEO of CapitaLand Malaysia REIT Management Sdn. Bhd. (CMRM), the manager of CLMT

Ms Yong Su-Lin, CEO of CapitaLand Malaysia REIT Management Sdn. Bhd. (CMRM), the manager of CLMT, said: “We are encouraged by CLMT’s strong performance in 1H 2025, driven by resilient demand across our diversified portfolio and proactive asset management strategies. Our strategic expansion into the industrial and logistics sectors, coupled with ongoing enhancements to our retail assets, positions us well to capture sustainable growth and deliver consistent value to our unitholders.” 

“We continue to elevate the appeal of our portfolio with family-oriented lifestyle offerings at 3 Damansara and The Mines that cater to evolving shopper preferences and strengthen the tenant mix. With these additions, shoppers will be able to enjoy a more wholesome experience at our malls and we are confident that our tenants can also benefit from the increase in footfall and sales.” 

“On the industrial and logistics front, we expanded our presence in Johor through the acquisition of three industrial properties in Senai Airport City. Alongside these properties, we expect the DPU-accretive acquisition of three industrial properties at Nusajaya Tech Park in Iskandar Johor and a modern automated logistics facility in Selangor to contribute positively to CLMT’s earnings in 2H 2025 upon completion. Collectively, 76%1 of these properties are leased to established tenants in the logistics and life science sectors, enhancing CLMT’s tenant base and income resilience. Increasing the industrial and logistics segment to approximately 8% of our total assets under management aligns with our long-term strategy to capitalise on the robust demand driven by Malaysia’s growing manufacturing and supply chain sectors,” added Ms Yong.

Proactive portfolio management

As at 30 June 2025, CLMT’s retail occupancy improved to 92.6% from 91.8% as at 31 March 2025. Including its two fully leased logistics properties, the overall portfolio occupancy stood at 93.3%. CLMT’s retail properties registered positive rental reversions of 10.8% for 1H 2025. Shopper traffic decreased slightly by 1.0% y-o-y, while tenant sales per sq ft grew 0.5% y-o-y.

Prudent capital management

On 3 June 2025, CLMT proposed a placement2 to raise gross cash proceeds of up to RM250 million. The proceeds will primarily be used to repay the existing bank borrowings incurred for the acquisitions of nine industrial and logistics assets, at a total cost of approximately RM400 million. This includes the completed acquisitions of Valdor Logistics Hub and Glenmarie Distribution Centre which are already contributing to income.

The proposed placement is part of the manager’s prudent capital management strategy to optimise CLMT’s financing structure, enhance balance sheet flexibility and create additional headroom for future growth opportunities. The issuance of new placement units will increase the number of units in circulation, thereby enhancing CLMT’s trading liquidity. A Unitholders’ Meeting is scheduled for 22 July 2025 to obtain approval for the proposed placement. As at 30 June 2025, CLMT’s gearing ratio stood at 43.0%, and is expected to decrease to 39.6% upon completion of the placement in 3Q 2025.

As at 30 June 2025, CLMT maintained a well-spread debt maturity profile with an average term to maturity of 4.1 years. Its year-to-date average cost of debt was 4.41%. 79% of its total borrowings are on fixed interest rates to mitigate exposure to interest rate movements.

Sustainability initiatives

CLMT continues to be recognised for its commitment to sustainable business practices. In June 2025, it was included in the FTSE4Good Bursa Malaysia (F4GBM) Index, which measures the performance of public listed companies with strong environmental, social and governance practices. CLMT also remains a constituent of the FTSE Bursa Malaysia MidS Cap Index3, which forms part of the FTSE Bursa Malaysia EMAS Index. 

In addition, CLMT was awarded a 4-star FTSE4Good ESG rating, reflecting marked improvements across multiple categories, including environmental supply chain, social supply chain, labour rights as well as human rights and community engagement, compared to its 2023 assessment.  

Distribution details

As CLMT’s DPU is paid out on a half-yearly basis, unitholders can expect to receive a DPU of 2.46 sen for the period from 1 January 2025 to 30 June 2025. The book closure date for the first income distribution will be on 5 August 2025 and payable on 19 August 2025.

Notes:

1. Based on net lettable area
2. Fundraising announcement
3. Comprises constituents from the FTSE Bursa Malaysia EMAS Index with full market capitalisation between MYR200 million and less than MYR2 billion.

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