KUALA LUMPUR, July 25 — CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), the manager of CapitaLand Malaysia Trust (CLMT), is optimistic that consumer spending will continue with its upward momentum this year.

CMRM chief executive officer Tan Choon Siang said consumer spending has maintained an upward trajectory in the first half of this year compared to last year.

"Without any reasons to suggest otherwise, we do think that consumer spending to maintain momentum because if you look at increases in spending such as food and beverage as well as entertainment, a lot of these are making a strong comeback,” he told reporters after a virtual media briefing on CLMT’s second quarter financial results for the financial year ending Dec 31, 2023, today.

Tan added that there was no impact of the weakening ringgit on consumer spending and he also expects greater spending from Singaporeans this year.

In the second quarter, CLMT recorded a net profit of RM29.72 million against RM23.12 million a year earlier, while revenue for the quarter jumped to RM104.76 million from RM68.32 million year-on-year.

It also said the significant increase in gross revenue was mainly due to the full quarter contribution following the recent acquisition of Queensbay Mall, which was completed on March 21, 2023.

Most of the malls reported an improvement in gross revenue as a result of higher occupancy compared to a year ago, it added.

Tan said CLMT’s portfolio continued to demonstrate resilience with a strong occupancy of 88.0 per cent and positive rental reversion of 4.7 per cent.

Tenant sales per square foot in the second quarter of 2023 also grew 4.8 per cent year-on-year, while shopper traffic on a same-store basis was up 25.8 per cent year-on-year.

"On the portfolio front, we have recently announced the acquisition of a freehold logistics warehouse located at the Hicom-Glenmarie Industrial Park in Shah Alam during the quarter.

"The acquisition is expected to be completed in the second half of 2023,” he added.

Post-completion, Tan said CLMT would be embarking on a convert-to-suit exercise to transform the logistics warehouse into a temperature-controlled distribution centre and the property will be leased to a fashion retailer for 10 years.

"Future contribution from this acquisition is expected to contribute to CLMT’s steady financial performance,” he added.

Asked if there were more planned acquisitions for the remainder of the year, Tan said there were some projects which CLMT is looking at but did not further elaborate.

"We have done two acquisitions and we have announced the third one. We also want to make sure that we absorb the acquisitions well and make sure that we achieve the intended results before we embark on further significant transactions,” he said.

Tan noted that future acquisitions would focus on logistics and industrial assets. — Bernama