KUALA LUMPUR: CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM), manager of CapitaLand Malaysia Mall Trust (CMMT), expects the trust to achieve better earnings in its financial year 2020 (FY20) on the back of its repositioning and reinvigorating strategies.
CMMT’s asset portfolio spans Malaysia comprising Gurney Plaza in Penang, three in Klang Valley – a majority interest in Sungei Wang in Kuala Lumpur; 3 Damansara (formerly Tropicana City Mall) and Tropicana City Office Tower in Petaling Jaya – The Mines in Seri Kembangan and the East Coast Mall in Kuantan.
CMRM CEO Low Peck Chen said the company planned to reposition its prime assets to lift them a notch higher than the competitors, and reinvigorating the assets in the Klang Valley by working with anchors and having new anchor tenants.
“Sungei Wang is stabilising its tenancy by using the climbing gym-cum-adventure park, Jumpa, as an effort towards a proactive asset management success story,” she told reporters at a briefing on CMMT’s 4Q 2019 results here today.
In a filing to Bursa Malaysia, CMMT said its net profit for FY19 eased to RM72.60 mil from RM135.63 mil in the previous year.
Meanwhile, revenue decreased to RM342.28 mil from RM350.15 mil previously.
Low said for 2019, 75% of CMMT’s net property income came from Gurney Plaza and East Coast Mall, while the remaining 25% was contributed by the Klang Valley malls.
“We expect the pattern to be more or less the same (this year), perhaps a 70:30 ratio,” she said.
Additionally, Low said in terms of financing cost and capital expenditure, the company had been actively undertaking asset enhancements.
“Cost-wise, it will not increase significantly on year-to-year basis … it would be around RM62 mil this year,” she said.
CMRM is a joint venture between CapitaLand Ltd, one of Asia’s largest real estate companies headquartered and listed in Singapore, and Malaysian Industrial Development Finance Bhd (MIDF). – Jan 22, 2020, Bernama