Trade Sector Analysis
A good spread in the trade mix ensures that CMT is not overly reliant on any one particular segment of the retail sector. At present, Food & Beverage (F&B) outlets/food courts are the top contributors to the total gross rental income, contributing 22.2 percent to the total gross rental income and accounting for 15.0 percent of the total NLA. These F&B outlets provide affordable meals to shoppers in a pleasant environment, thus encouraging repeat visits by shoppers to our shopping malls.

Increasing Property Value through Asset Enhancement
2004 saw the completion of all asset enhancement work in Junction 8. Approximately 50,000 sq. ft. of new retail space was completed. This initiative will add approximately S$4.9 million per annum of incremental NPI to the portfolio.

Tampines Mall enjoyed the fruits of the asset enhancement work that was undertaken over two years and completed at the end of 2004. The additional NPI generated is approximately S$1.5 million per annum.

Phase 1 of the asset enhancement works in IMM Building was undertaken and completed in 2004, providing an incremental NPI of S$0.8 million per annum on a stabilised basis.

In total, the additional NPI generated from various works undertaken at the aforementioned malls will amount to approximately S$7.2 million per annum on a stabilised basis. This partially contributed to an increase in property valuation for these three assets by S$249.0 million or 23.8 percent from the financial year ended 31 December 2003.

Yield-Accretive Acquisition
In 2004 CMT acquired Plaza Singapura, a freehold property located in Orchard Road, on top of Dhoby Ghaut MRT station. Dhoby Ghaut MRT station has two train lines running through it. The acquisition was yield-accretive and also further reduces CMT’s dependency of income on any one mall.

The acquisition added another S$17.7 million to the NPI of the portfolio from 2 August to 31 December 2004. The Manager will continue to pursue other acquisitions that will be yield-accretive to the portfolio.