Shopping center operator CapitaLand Malaysia Mall Trust suffered a 17.2 percent hit to quarterly income, which was knocked down to $6.08 million for the third quarter.
The fall was largely attributed to higher levels of vacancies and the rental relief granted to tenants under Malaysia’s Recovery Movement Control Order – an order that has been extended until the end of the year to slow the resurging transmission rates of Covid-19.
“In light of the prevailing cautious business and consumer sentiments exacerbated by Covid-19, the operating environment for Malaysia’s retail industry continues to be challenging in the near-term,” CapitaLand Malaysia Mall REIT Management chairman David Wong said.
“We will continue to keep a pulse on the evolving situation and closely engage with our tenants. In addition, we will focus our efforts on stabilizing the portfolio through proactive asset and lease management to build greater resilience in CMMT’s retail ecosystem.”
And, with foot traffic recovering to around 58 percent of normal levels and tenant sales to 82 percent, the firm is keeping a cautious eye on the near-term market conditions.
CMRM’s CEO Low Peck Chen said the business focus in the short term is in strengthening its operational efficiency and supporting its tenants in adapting to the new normal brought on by the Covid-19 pandemic.
“Notwithstanding near-term challenges, we remain positive on CMMT’s long term prospects on the strength of our income- and geographically-diversified assets.”