CapitaLand 1Q Profit More Than Doubles As Most Malls Improve Revenue

CapitaLand Malaysia Trust, recorded gross revenue of RM111.9 million in 1Q 2024, an increase of RM33.4 million or 42.5% against 1Q 2023. The group said the significant increase in gross revenue was mainly due to a full quarter contribution from Queensbay Mall post completion of its acquisition towards end of 1Q 2023.

Most of the other malls within its portfolio also reported an improvement in gross revenue as a result of positive rental reversions and higher occupancies. Property operating expenses for 1Q 2024 were RM47.9 million, an increase of RM8.7 million or 22.1% against 1Q 2023. A significant portion of the increase was due to the full quarter addition of Queensbay Mall’s operating expenses post completion of acquisition in 1Q 2023 and the remaining was largely due to higher manpower costs.

Net property income for 1Q 2024 was RM64 million, an increase of RM24.7 million or 63 % against 1Q 2023 of RM39.2 million. Profit after tax for the quarter was also significantly higher at RM33.4 million as opposed to RM12 million registered in the previous years quarter.

The company also said its finance costs for 1Q 2024 of RM23.7 million was higher than 1Q 2023 due to additional debt facilities drawn to finance the acquisition of Queensbay Mall in FY 2023. The Group’s borrowings were also subjected to higher interest costs as a result of the Overnight Policy Rate (OPR) hikes. The average cost of debt was 4.39% p.a. for this quarter against 1Q 2023 of 3.58% p.a. Overall, distributable income to Unitholders for 1Q 2024 was RM33.6 million, an increase of RM13.8 million or 69.8% as compared to 1Q 2023 due to the abovementioned factors.

The group expects to complete the acquisition of three freehold ready-built factories located at Nusajaya Tech Park in Iskandar Malaysia, Johor in the fourth quarter in 2024. Looking ahead, the Manager said it will continue to adopt a proactive portfolio and asset management strategy, with a focus on acquiring yield-accretive quality assets to deliver sustainable value to unitholders.

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