PETALING JAYA: Capitaland Malaysia Trust (CLMT) is expecting improvements in its business performance in 2022, as the greater normalisation of economic and social activities will augur well for the general recovery of Malaysia’s retail sector, according to CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) chairman Lui Chong Chee.
“In particular, shopping malls that cater to tourists will receive a boost from the reopening of borders.
“Although we anticipate improvements in business performance in 2022, we are mindful that consumer spending may take some time to recover and return to pre-pandemic levels,” said Lui in a statement.
CMRM is the manager of the real estate investment trust (REIT).
“We will reinforce our efforts on stabilising CLMT’s portfolio through proactive asset and lease management.
“We are also actively exploring acquisition opportunities to build a diversified and resilient portfolio,” added Lui.
For its first quarter ended March 31, 2022 (1Q22), the REIT posted a 44.8% year-on-year rise in net property income to RM36.1mil while revenue rose 19.3% to RM67.6mil.
Distributable income for 1Q22 was RM20.5mil and distribution per unit was 0.95 sen.
Lui said the improved 1Q22 results was due to domestic consumption recovery following the easing of containment measures.
CMRM CEO Tan Choon Siang also noted that tenant sales per sq ft in 1Q22 surpassed 2019’s average level by 2.4%.
“Portfolio occupancy as at March 31, 2022 declined slightly to 79.5%, largely due to the exit of a supermarket anchor at 3 Damansara.
“In addition to replacing the supermarket anchor, we will be taking this opportunity to embark on a holistic turnaround plan for 3 Damansara to strengthen the mall’s appeal as a neighbourhood destination,” said Tan.
“CLMT’s retail tenants have been allowed to operate at full capacity since April 1, 2022. Coupled with the reopening of the borders, we look forward to the return of tourists and increased footfall to CLMT malls,” added Tan.