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- CLMT’s retail properties delivered a positive rental reversion of 10.8% in 1HFY2025, with 47.1% of leases due for renewal this year already renewed.
KUALA LUMPUR (July 22): CapitaLand Malaysia Trust (KL:CLMT), which reported a 7.3% increase in net property income (NPI) to RM138.84 million in the first half of 2025 (1HFY2025), remains positive on its prospects for the second half of this year, but has flagged uncertainties stemming from the expanded sales and service tax (SST) and electricity tariffs revision.
“For the first half of this year we had a pretty good year," said Yong Su-Lin, chief executive officer of the REIT's manager, CapitaLand Malaysia REIT Management Sdn Bhd. "We are positive on the second half of this year as we see the initiative we worked on last year come into fruition."
"But we are cautious on various initiatives in terms of SST and electricity tariff,” Yong added at a media briefing on Monday.
Yong said CLMT expects to yield some savings this month from the new electricity tariff framework which has set the automatic fuel adjustment (AFA) at 0 sen/kWh. However, as the AFA is a mechanism to be carried out on a monthly basis, the REIT needs to continue monitoring changes in the future.
Electricity accounts for about 40% of CLMT’s operating expenditure, Yong said.
The newly expanded SST also applies to commercial rental and leasing services effective July 1, at a rate of 8%. Yong said CLMT will be able to pass through the tax to tenants.
The positive outlook is also supported by a rental reversion, said Yong, adding that the effects will be felt for the remainder of the year.
CLMT’s retail properties delivered a positive rental reversion of 10.8% in 1HFY2025, with 47.1% of leases due for renewal this year already renewed.
Occupancy rates have also improved across CLMT's Klang Valley malls. Overall, its portfolio — which includes retail, industrial and logistics properties — stood at 93.3% as at June 30, 2025, up from 93.1% a year earlier.
CLMT’s portfolio comprises six retail malls and two logistics assets with a combined NLA of 4.3 million sq ft. The retail assets include Gurney Plaza and Queensbay Mall in Penang, Sungei Wang Plaza, 3 Damansara and The Mines in the Klang Valley, and East Coast Mall in Kuantan. The logistics assets are Valdor Logistics Hub in Penang and Glenmarie Distribution Centre in Shah Alam.
In the 2QFY2025, CLMT's shopper traffic dropped 2.2% year-on-year. For the first half, the decline was 1%.
The REIT attributed the fall to timing differences in festive periods compared to last year, as well as signs of more cautious consumer sentiment on the expanded SST.
Tenant sales per square foot declined 2.8% year-on-year in 2QFY2025, but was up marginally by 0.5% in 1HFY2025.
“In terms of customer sentiment, it is a bit early right now (to assess) because the full impact of the expanded SST and all has not really hit our shoppers. But we cautiously expect it to be a slightly muted,” Yong said.
CLMT’s NPI rose 5% to RM68.75 million in 2QFY2025, from RM65.47 million a year earlier, while gross revenue inched up 1.8% to RM115.73 million from RM113.65 million.
The REIT said its 2QFY2025’s NPI would have recorded a 10% growth while revenue would have increased by 4.6%, if the RM3 million one-off compensation income due to early termination of a lease contract in 2QFY2024 were excluded.
Distributable income in the quarter rose 3.9% to RM34.57 million from RM33.27 million a year earlier. The REIT announced a distribution of 1.18 sen per unit, up from 1.17 sen last year, raising its distribution per unit for 1HFY2025 to 2.46 sen, compared with 2.36 sen in 1HFY2024.
For 1HFY2025, the REIT’s NPI rose 7.3% to RM138.84 million from RM129.45 million a year ago, while gross revenue grew 4.7% to RM236.11 million from RM225.54 million. Correspondingly, distributable income rose 7.4% to RM71.87 million from RM66.89 million previously.
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