-- CapitaLand Malaysia Trust (CLMT) announced a distributable income growth of 10.9% to RM37.3 million for the period 1 January 2025 to 31 March 2025 (1Q 2025) compared to the same quarter last year, achieving a corresponding 7.6% increase in distribution per unit (DPU) to 1.28 sen.
CLMT's stronger operating performance was due to healthy rental reversions for its retail properties as well as income contribution from the fully occupied Glenmarie Distribution Centre (pictured) following the completion of its asset enhancement initiative.
Summary of CLMT’s results
Net property income in 1Q 2025 was up 9.6% year-on-year (y-o-y) to RM70.1 million, primarily driven by higher revenue across most of its properties. The stronger operating performance was due to healthy rental reversions for its retail properties as well as income contribution from the fully occupied Glenmarie Distribution Centre following the completion of its asset enhancement initiative.
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: “Our strong performance in 1Q 2025 builds upon the momentum established in previous quarters, with most of our retail assets continuing to deliver robust results. As part of our ongoing efforts to enhance the retail experience, we recently completed asset enhancement works at Gurney Plaza, introducing new retail concepts to attract shoppers. At The Mines, we have secured a new kids playland operator which will occupy approximately 25,000 square feet (sq ft) of net lettable area. This addition will further enrich the mall’s experiential offerings and strengthen our retail portfolio. Looking ahead, we will continue to intensify efforts to attract exciting new tenants and deliver a well-curated tenant mix across our retail portfolio.”
“On the industrial and logistics front, we marked our second foray into Johor in 1Q 2025 with the acquisitions of three industrial properties in Senai Airport City. These acquisitions, together with our earlier acquisitions of three industrial properties in Nusajaya Tech Park and logistics property in Elmina Business Park in Selangor, are expected to contribute positively to CLMT’s earnings upon completion in 2H 2025. As we execute our portfolio reconstitution strategy, we will remain agile in capturing growth opportunities while maintaining discipline in capital management to deliver sustainable returns to unitholders,” added Ms Yong.
Proactive portfolio management
As at 31 March 2025, CLMT’s retail occupancy remained stable at 91.8%. Including its two fully leased logistics properties, the overall portfolio occupancy stood at 92.6%. CLMT’s retail properties registered positive rental reversions of 12.4% for 1Q 2025, higher than the 11.3% for FY 2024. Shopper traffic increased by 0.1% y-o-y, while tenant sales per sq ft grew 5.3% y-o-y.
Prudent capital management
CLMT maintained a well-spread debt maturity profile with an average term to maturity of 4.4 years. As at 31 March 2025, its year-to-date average cost of debt and gearing ratio were 4.46% and 41.5%, respectively. 85% of its total borrowings are on fixed interest rates to mitigate exposure to interest rate movements.
