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Financial Highlights

Summary of CMT Results 2018
FY 2017 FY 2018 1 July to 30 September 8 November to 31 December 1
Actual Actual Actual Actual
Gross Revenue (S$'000) 682,469 697,521 170,527 109,687
Net Property Income (S$'000) 478,234 493,548 122,680 75,809
Amount Available for Distribution (S$'000) 413,003 429,359 106,156 57,387
Distributable Income (S$'000) 395,8242 410,6753 103,5424 57,387
Distribution Per Unit ("DPU") (cents)

For the period
Annualised

11.16¢
11.16¢

11.50¢
11.50¢

2.92¢
11.58¢

1.56¢
10.54¢

Notes

  1. Advanced distribution income of S$50.7 million (or DPU of 1.43 cents) for the period from 1 October 2018 to 7 November 2018 had been paid on 30 November 2018. The advanced distribution income comprised wholly taxable income of CapitaLand Mall Trust ("CMT") and it included release of S$9.7 million, part of the S$13.7 million (of which S$4.0 million was released in 3Q 2018) of taxable income available for distribution previously retained in 1H 2018, to holders of units in CMT ("Units" and holders of units, "Unitholders"). In addition, prior to the completion of the acquisition of the balance 70.0% of the units in Infinity Mall Trust ("IMT") on 1 November 2018, CMT received capital distribution of S$11.1 million from IMT, which had been retained for general corporate and working capital purposes.
  2. Capital distribution and tax-exempt income distribution of S$17.2 million, including advanced distribution of tax-exempt income of S$4.8 million for the period 1 July 2017 to 6 December 2017, received from CapitaLand Retail China Trust ("CRCT") in FY 2017 had been retained for general corporate and working capital purposes.
  3. Capital distribution and tax-exempt income distribution of S$7.6 million received from CRCT in FY 2018 and capital distribution of S$11.1 million received from IMT had been retained for general corporate and working capital purposes.
  4. CMT is committed to distribute 100% of its taxable income available for distribution to Unitholders for the financial year ended 31 December 2018. In 3Q 2018, CMT had released S$4.0 million, part of the S$13.7 million taxable income available for distribution retained in 1H 2018, to Unitholders. Capital distribution and tax-exempt income distribution of S$6.6 million received from CRCT in 3Q 2018 had been retained for general corporate and working capital purposes.

Statements of Total Return and Distribution Statements (4Q 2018 vs 4Q 2017)
Statements of Total Return Group Trust
4Q 20181
S$'000		 4Q 2017
S$'000		 %
Change		 4Q 2018
S$'000		 4Q 2017
S$'000		 %
Change
Gross rental income 165,487 158,226 4.6 141,216 145,258 (2.8)
Car park income 4,954 5,232 (5.3) 4,505 4,741 (5.0)
Other income 10,023 8,944 12.1 8,931 8,176 9.2
Gross revenue 180,464 172,402 4.7 154,652 158,175 (2.2)
Property management fees (6,817) (6,498) 4.9 (5,843) (5,978) (2.3)
Property tax (14,166) (14,049) 0.8 (11,837) (12,737) (7.1)
Other property
operating expenses2		 (35,056) (32,597) 7.5 (30,115) (29,975) 0.5
Property operating expenses (56,039) (53,144) 5.4 (47,795) (48,690) (1.8)
Net property income 124,425 119,258 4.3 106,857 109,485 (2.4)
Interest and other income 3 3,799 3,238 17.3 10,052 8,084 24.3
Investment income4 - - - 32,371 25,922 24.9
Management fees (11,649) (11,326) 2.9 (9,747) (10,272) (5.1)
Trust expenses (1,138) (981) 16.0 (1,056) (931) 13.4
Costs associated with acquisition of subsidiary5 (8,981) - NM (8,981) - NM
Finance costs (26,973) (26,106) 3.3 (24,950) (26,191) (4.7)
Net income before share of results of associate and joint ventures 79,483 84,083 (5.5) 104,546 106,097 (1.5)
Share of results (net of tax) of:
- Associate6 2,259 7,444 (69.7) - - -
- Joint ventures7 16,717 10,812 54.6 - - -
Net income 98,459 102,339 (3.8) 104,546 106,097 (1.5)
Net change in fair value of investment properties 23,736 25,471 (6.8) 18,294 25,357 (27.9)
Net change in fair value of investment properties under development - (516) NM (11,000) (281) NM
Gain from change in ownership interest in a joint venture8 - - - 6,067 - NM
Gain on divestment of subsidiary9 - - - - 19,678 NM
Impairment loss written back10 - - - 2,069 2,129 (2.8)
Dilution gain/(loss) of interest in associate 91 (23) NM - - -
Total return for the period before taxation 122,286 127,271 (3.9) 119,976 152,980 (21.6)
Taxation11 387 (159) NM 78 (159) NM
Total return for the period 122,673 127,112 (3.5) 120,054 152,821 (21.4)

Distribution statements
Net income before share of results of associate and joint ventures 79,483 84,083 (5.5) 104,546 106,097 (1.5)
Net effect of non-tax deductible/(chargeable) items12 2,610 (5,955) NM 4,943 (5,966) NM
Distributions from associate - 4,798 NM - - -
Distributions from joint ventures13 26,925 16,940 58.9 - - -
Net loss from subsidiaries 14 471 265 77.7 - - -
Amount available for distribution
to Unitholders 		109,489 100,131 9.3 109,489 100,131 9.3
Distributable income to
Unitholders15		 108,137 102,933 5.1 108,137 102,933 5.1


Notes

  1. The Acquisition was completed on 1 November 2018. IMT is now a wholly owned subsidiary of CMT and its financials are consolidated to CMT Group's financial results with effect from 1 November 2018.

  2. Included as part of the other property operating expenses are the following:

      Group Trust
    4Q 2018
    S$'000    		 4Q 2017
    S$'000    		 %
    Change    		 4Q 2018
    S$'000    		 4Q 2017
    S$'000    		 %
    Change
    Depreciation and amortisation 126 163 (22.7) 113 158 (28.5)
    Allowance for doubtful debts and bad debts (written back) / written off (105) 22 NM (82) 22 NM

  3. At Group level, it includes interest income on the unitholders' loans extended to IMT from 1 October 2018 to 31 October 2018 for 4Q 2018 as well as from 1 October 2017 to 31 December 2017 for 4Q 2017. At Trust level, it includes interest income on the unitholders' loans extended to BMT, VO1T, VO2T and IMT for 4Q 2018. For 4Q 2017, it includes interest income from BMT, the Victory Trusts and IMT.
  4. Investment income relates to distributions from BMT, IMT (including capital distribution of S$11.1 million for 4Q 2018) and RCS Trust.
  5. This relates to costs incurred for the Acquisition, including acquisition fees and legal and professional fees in accordance with FRS 103 Business Combinations.
  6. Share of results of associate relates to the equity accounting of CRCT's results on a 3-month lag basis.
  7. For 4Q 2018, this relates to the Group's 40.0% interest in RCS Trust and 30.0% interest in IMT (for period 1 October to 31 October 2018) and 30.0% interest in Infinity Office Trust ("IOT"). For 4Q 2017, this relates to the Group's 40.0% interest in RCS Trust and 30.0% interest in IMT and IOT.

    Details are as follows:
      Group
    4Q 2018
    S$'000    		 4Q 2017
    S$'000    		 %
    Change
    Share of results (net of tax) of joint ventures
    - Gross revenue 25,421 28,417 (10.5)
    - Property operating expenses (5,844) (7,302) (20.0)
    - Net property income 19,577 21,115 (7.3)
    - Finance costs (4,149) (4,975) (16.6)
    - Net change in fair value of investment properties 3,077 (4,480) NM
    - Others(A) (1,788) (848) NM
      16,717 10,812 54.6

    (A) Included management fees.

  8. This relates to the gain arising from the fair value of CMT's pre-existing 30.0% interest in IMT based on the net asset value of IMT as at 31 October 2018, prior to the completion of the Acquisition, in accordance with FRS 103 Business Combinations.
  9. This relates to the gain arising from the divestment of VSRT which was completed on 31 October 2017.
  10. For 4Q 2018, this relates to write back of impairment loss in respect of CMT's interest in BMT. For 4Q 2017, this relates to write back of impairment loss in respect of CMT's interest in BMT and IMT.
  11. For 4Q 2018, this relates to tax refunded to CMT for Year of Assessment ("YA") 2009 and BMT for YA 2015 as well as tax assessed on BMT for YA 2016 by the Inland Revenue Authority of Singapore ("IRAS"). For 4Q 2017, this relates to tax assessed on CMT for YA 2013.

  12. Included in the non-tax deductible/(chargeable) items are the following:

      Group Trust
    4Q 2018
    S$'000    		 4Q 2017
    S$'000    		 %
    Change    		 4Q 2018
    S$'000    		 4Q 2017
    S$'000    		 %
    Change
    Non-tax deductible/(chargeable) items
    - Trustee's fees 343 320 7.2 343 319 7.5
    - Temporary differences
    and other adjustments(A)    		 2,267 (6,275) NM 4,600 (6,285) NM
    Net effect of non-tax deductible/ (chargeable) items 2,610 (5,955) NM 4,943 (5,966) NM

    (A) Includes capital allowances claim on assets that qualify as plant and machinery under the Income Tax Act.
  13. For 4Q 2018, distributions from joint ventures relate to CMT's 40.0% interest in RCS Trust and 30.0% interest in IMT (for period 1 October 2018 to 31 October 2018, including capital distribution of S$11.1 million). For 4Q 2017, it relates to CMT's 40.0% interest in RCS Trust and 30.0% interest in IMT.
  14. For 4Q 2018, this relates to CMT MTN, VO1T and VO2T. For 4Q 2017, it relates to CMT MTN and the Victory Trusts. For VSRT, it relates to the loss for the period up to 31 October 2017.
  15. In 4Q 2018, CMT had on 7 November 2018 released the balance S$9.7 million of its taxable income available for distribution retained in 1H 2018 to Unitholders. Prior to the completion of the Acquisition, CMT received capital distribution of S$11.1 million from IMT, which had been retained for general corporate and working capital purposes.

    In 4Q 2017, CMT had released S$7.6 million of its taxable income available for distribution to Unitholders. Tax-exempt income distribution of S$4.8 million received from CRCT had been retained for general corporate and working capital purposes.

    NM – not meaningful
Balance Sheet

As at 31 Dec 2018 vs 31 Dec 2017

  Group Trust
  31 Dec 20181
S$'000		 31 Dec 2017
S$'000		 %
Change		 31 Dec 2018
S$'000		 31 Dec 2017
S$'000		 %
Change
Non-current assets            
Plant & equipment 2,813 2,120 32.7 1,414 1,676 (15.6)
Investment properties2 9,411,000 8,311,000 13.2 7,499,000 7,530,000 (0.4)
Investment properties under development3 664,576 459,386 44.7 433,165 308,808 40.3
Interests in subsidiaries4 - - - 1,709,581 935,958 82.7
Interest in associate5 191,959 194,389 (1.3) 130,836 130,836 -
Interests in joint ventures6 828,545 937,895 (11.7) 588,569 708,194 (16.9)
Financial derivatives7 26,619 14,953 78.0 - - -
Other assets 137 137 - 137 137 -
Total non-current
assets		 11,125,649 9,919,880 12.2 10,362,702 9,615,609 7.8
Current assets
Trade & other
receivables		 27,518 32,399 (15.1) 30,235 32,738 (7.6)
Cash & cash equivalents 348,503 522,745 (33.3) 286,117 491,871 (41.8)
Financial derivatives7 - 29,418 NM - - -
Total current assets 376,021 584,562 (35.7) 316,352 524,609 (39.7)
 
Total assets 11,501,670 10,504,442 9.5 10,679,054 10,140,218 5.3
Current liabilities
Financial derivatives7 34,670 - NM - - NM
Trade & other payables 199,271 155,588 28.1 159,034 139,717 13.8
Current portion of security deposits 63,408 57,619 10.0 55,021 54,317 1.3
Short-term borrowings8 528,557 534,692 (1.1) 157,506 505,132 (68.8)
Provisions for taxation 1,794 302 NM - 159 NM
Total current liabilities 827,700 748,201 10.6 371,561 699,325 (46.9)
Non-current liabilities
Financial derivatives7 27,733 77,013 (64.0) - - -
Long-term borrowings9 3,099,260 2,648,409 17.0 3,070,129 2,681,705 14.5
Non-current portion of
security deposits		 117,677 98,113 19.9 89,247 87,509 2.0
Other payables - 4,661 NM - 3,992 NM
Total non-current liabilities 3,244,670 2,828,196 14.7 3,159,376 2,773,206 13.9
 
Total liabilities 4,072,370 3,576,397 13.9 3,530,937 3,472,531 1.7
 
Net assets 7,429,300 6,928,045 7.2 7,148,117 6,667,687 7.2
 
Unitholders' funds 7,429,300 6,928,045 7.2 7,148,117 6,667,687 7.2

FootNotes

  1. The Acquisition was completed on 1 November 2018. IMT is now a wholly owned subsidiary of CMT and its financials are consolidated to CMT Group's financial results with effect from 1 November 2018.
  2. Investment properties are stated at valuations performed by independent professional valuers as at 31 December 2018.
  3. Investment properties under development refer to Funan which is undergoing redevelopment into an integrated development. The carrying amount reflects the valuation of the total land value as at 31 December 2018 and the capital expenditure capitalised.
  4. Interest in subsidiaries refers to cost of investments in BMT, IMT, CMT MTN, VO1T and VO2T (including the unitholders' loans to subsidiaries).
  5. Interest in associate refers to cost of investment in CRCT. Aggregate investment in CRCT amounts to 122,705,000 units in CRCT at cost of S$130.8 million.
  6. Interest in joint ventures refers to 40.0% interest in RCS Trust and 30.0% interest in IOT. Prior to 1 November 2018, IMT is accounted as a joint venture of CMT Group.
  7. Financial derivative assets and liabilities as at 31 December 2018 relate to fair value of the cross currency and interest rate swaps. As of 31 December 2017, these relate to fair value of the cross currency swaps.
  8. As of 31 December 2018, this relates to Euro-Medium Term Note ("EMTN") of JPY10.0 billion and secured bank borrowings of S$405.0 million due in October 2019.
  9. These relate mainly to the fixed and floating rates notes issued by CMT MTN through its US$3.0 billion EMTN Programme and S$3.5 billion MTN Programme, the S$350.0 million 7-year retail bonds issued under the S$3.5 billion retail bond programme by CMT as well as unsecured bank borrowings.

    NM – not meaningful
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