KUALA LUMPUR: Capitaland Malaysia Trust
(CLMT) remains proactive in its portfolio and asset management and continually evaluates opportunities to grow and enhance its portfolio.
CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) chief executive officer Tan Choon Siang said it recently announced the acquisition of a freehold logistics warehouse located at the Hicom-Glenmarie Industrial Park in Shah Alam during the quarter.
“The acquisition is expected to be completed in 2H23. Post-completion, CLMT will be embarking on a convert-to-suit exercise to transform the logistics warehouse into a temperature-controlled distribution centre and the property will be leased to a fashion retailer for ten years. Future contribution from this acquisition is expected to contribute to CLMT’s steady financial performance,” he said in a statement.
“Continuing our journey to enhance our portfolio’s attractiveness, new and exciting food and beverage (F&B) concepts were introduced at Gurney Plaza, East Coast Mall and Sungei Wang Plaza to refresh the tenant mix and elevate the overall retail experience.
“Our efforts to create value continue with the planned asset enhancement initiative at 3 Damansara to optimise about 14,000 square feet of space at the lower ground floor which is expected to be completed by end-2023, injecting more quality F&B offerings. We remain proactive in our portfolio and asset management and continually evaluate opportunities to grow and enhance CLMT’s portfolio,” Tan said.
In the second quarter ended June 30 (2Q23), CLMT’s net property income rose 51.8% to RM56.8mil compared with RM37.4mil posted in the same quarter a year ago.
The company said the positive financial performance was largely due to the first full quarter contribution from the newly acquired Queensbay Mall and higher rental income from the majority of CLMT’s retail properties.
Distributable income for 2Q23 rose 32.7% year-on-year to RM28.6mil and distribution per unit (DPU) of 1.06 sen for the quarter was 6.0% higher than the same period last year.
As CLMT’s DPU is paid out on a half-yearly basis, unitholders will receive a total DPU of 1.19 sen for the period from March 10, 2023 to June 30, 2023, payable by September 2023.
The board of CMRM has elected to apply the distribution reinvestment plan to the income distribution for 1H23. The dates of book closure and income distribution will be announced upon obtaining the necessary regulatory approval.
“While domestic demand is expected to anchor Malaysia’s economic growth for the remainder of 2023, we remain cognisant of the uncertainties in the global economy and the impact of price inflation on consumer sentiments.
“We will continue to reinforce our asset and lease management efforts to strengthen CLMT’s portfolio and proactively implement measures to mitigate the impact of rising costs,” CMRM chairman Lui Chong Chee said.
