Retail REIT CapitaLand Mall Trust (SGX:C38U) released their latest 2019 annual report for the financial year ended 31 December 2019 last Thursday (09 April 2020.)

Being a unitholder, I went through the report to read about the latest from the REIT’s management, took some notes, and am sharing them in this post today for the benefit of those who do not have the time to go through the report:

Message to Unitholders – by CEO Tony Tan Tee Hieong, and Chairperson Teo Swee Lian:

  • CapitaLand Mall’s resilient performance, where its gross revenue and net property income rose 12.8% and 13.1% to S$786.7m and S$558.2m respectively, was underpinned by the new contribution of Funan (which was reopened on 28 June 2019, after closing for re-development since July 2016), along with the 100.0% contribution of Westgate (after the REIT acquired the remaining 70.0% interest on 01 November 2018.)
  • The REIT’s aggregate leverage at the end of financial year 2019 was at a healthy 32.9%, and the adjusted net asset value was S$2.07 (compared to S$2.08 in FY2018.)
  • Shopper traffic (to the REIT’s managed malls) grew by 1.4% compared to the previous year (i.e. FY2018), and its portfolio occupancy was maintained at a high of 99.3% as at 31 December 2019. The REIT has also managed to renew leases for 32.1% of the portfolio’s net lettable area with a positive rental reversion at +0.8%.
  • Apart from the re-development of Funan (to adapt to the evolving retail landscape and shoppers’ needs), 100.0% stake in Westgate (allowing them to leverage their experience and resources to unlock future volume in tandem with the URA’s Master Plan 2019 for Jurong Lake District), the REIT is also currently undergoing asset enhancement initiative works for Lot One since 3Q FY2019 (among the works include an enhanced cineplex, and the expansion of the community library) with works to be progressively completed for 2H FY2018.
  • In January 2020, a proposed merger between CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) into a diversified REIT to be named as CapitaLand Integrated Commercial Trust was announced, subject to approval by the unitholders of both CMT and CCT.
  • In light of the Covid-19 outbreak in Singapore, which adversely impacted the retail industry, the REIT, together with CapitaLand, have implemented a series to help their mall tenants through this challenging period. Additionally, the REIT will also pass on the full savings of the 15% property tax rebate granted under Budget 2020 to their tenants.

CapitaLand Mall Trust’s Property Portfolio as at 31 December 2019:

As at the end of financial year 2019 ended 31 December 2019, CapitaLand Mall Trust’s portfolio consists of 15 properties located in the suburban and downtown core of Singapore:

  • Bedok Mall
  • Bugis+
  • Bugis Junction
  • Bukit Panjang Plaza
  • Clarke Quay
  • Funan
  • IMM Building
  • JCube
  • Junction 8
  • Lot One Shoppers’ Mall
  • Plaza Singapura
  • Raffles City Singapore (40.0% interest)
  • Tampines Mall
  • The Atrium@Orchard
  • Westgate

10 Largest Tenants of CapitaLand Mall Trust:

As at 31 December 2019, no single tenant contributed more than 4.0% of the total gross rental income. Collectively, the REIT’s 10 largest tenants accounted for about 22.1% of the total gross rental income.

The REIT’s 10 largest tenants of CapitaLand Mall Trust are (with their percentage contribution towards the REIT’s total gross rental income in brackets):

  • RC Hotels (Pte) Ltd (3.2%)
  • NTUC Enterprise (3.2%)
  • Temasek Holdings (Private) Limited (2.8%)
  • Al-Futtaim Group (2.7%)
  • Breadtalk Group Limited (2.5%)
  • Cold Storage Singapore (1983) Pte Ltd (2.4%)
  • BHG (Singapore) Pte Ltd (1.7%)
  • Golden Village Multiplex Pte Ltd (1.2%)
  • Wing Tai Retail Management Pte Ltd (1.2%)
  • Isetan (Singapore) Limited (1.2%)

CapitaLand Mall Trust’s Debt Maturity Profile:

In terms of the REIT’s debt maturity profile, only 7.4% (or S$262.2m) of its borrowings will mature within a year (i.e. in 2020), 47.3% (or S$1,678.8m) of its borrowings will mature after 1 year but within 5 years, and 45.3% (or S$1,606.0m) of its borrowings will mature after 5 years.

Postponement of the Upcoming Annual General Meeting (AGM):

In a separate note, the REIT announced that, in light of the Covid-19 situation, and in anticipation of legislative amendments in relation to the conduct of general meetings (including holding the meetings by virtual means), it will be deferring their holding of their AGM until further notice.

Download Your Copy of CapitaLand Mall Trust’s 2019 Annual Report:

You can download a PDF copy of CapitaLand Mall Trust’s latest annual report for FY2019 here.

Disclaimer: At the time of writing, I am a unitholder of CapitaLand Mall Trust.

 

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