CapitaLand Malaysia REIT Management which manages some of the iconic malls and properties in the country has announced a drop in its net property income from RM58.7 million for the first half of last year to RM51.3 million, registering a 12.6% drop.
The group that manages malls like Sungai Wang Plaza, Gurney Plaze and The Mines, attributes the dip due to lower
gross rental income, which was affected by negative rental reversions. Mr Lui Chong Chee, Chairman of CMRM, claimed that the economic recovery impacted by a resurgence of COVID-19 cases that led to the introduction of stricter containment measures had lead to the decline. However, he is optimistic on the announced National Recovery Plan 1 aimed at getting the country back to normalcy will see footfall coming back to the malls.
The retail sector has been identified as one of the key economic sectors prioritised for vaccination and the Retail Industry Vaccination Programme will be rolled out from next week. Given the fluid nature of the pandemic and heightened macroeconomic uncertainties, CMMT maintains a cautious outlook for the rest of the year, whilst continuing to be proactive in looking after the well-being of its stakeholders. Despite the challenges, the group is positive that its expanded investment mandate to cover new economy sectors beyond retail will open up new opportunities and strengthen its performance through economic cycles. Moving beyond malls, CMMT has obtained shareholders support to invest in new sectors. This will also result in a name change.
Under the stricter guidelines, only tenants providing essential services can operate. As a result, portfolio shopper traffic declined 17.9% from the previous quarter.” “To maintain portfolio stability, we will continue to balance rental reversions and occupancy levels added Ms Low Peck Chen, CEO of Capital Malls. The financially stable group is also proactively looking for acquisition opportunities in existing and new asset classes.