CapitaLand Malaysia Mall Trust | Annual Report 2020

LOW PECK CHEN Chief Executive Officer To strengthen CMMT’s financial position amidst the uncertainties, various cost containment measures were implemented, including deferring non-essential operational and capital expenditure and renegotiation of procurement contracts. Strengthening the balance sheet via continued prudent and proactive capital management is another priority for CMMT. We also established the Distribution Reinvestment Plan (DRP) to offer additional flexibility to Unitholders to receive future income distribution in cash, units or a combination of cash and units. The DRP provides Unitholders with an opportunity to enhance and maximise the value of their unitholdings in CMMT by investing in DRP units at a discount. As a show of solidarity with all stakeholders, the CMMT Board and the CEO have voluntarily opted for a reduction in board fees and salaries from April 2020. HOWWAS CMMT’S FINANCIAL PERFORMANCE IN FY 2020? The year 2020was ahighly challenging one for the retail industry, arising from the impact of the COVID-19 pandemi c . CMMT ’ s f i nanc i a l performance for the financial year ended 31 December 2020 (FY 2020) reflects the impact of vacancies and uncertainties caused by COVID-19. CMMT recorded a net property income (NPI) of RM133.5 million, a 33.9% decline from NPI of RM202.1 million in FY 2019, mainly attributed to the rental relief granted to Affected Tenants 2 that were required to close during MCO. For the year under review, CMMT recorded a gross revenue of RM261.4 million. Total comprehensive loss was RM84.5 million, after accounting for an unrealised net fair value loss on investment properties of RM157.9 million. CMMT’s distributable income of RM61.8 million for FY 2020 was 51.7% lower than FY 2019 due to lower NPI. This led to the corresponding decline in DPU by 52.0% to 3.00 sen. PLEASE TELL US MORE ABOUT THE TENANT SUPPORT PACKAGE. In response to the unprecedented challenges brought about by COVID-19, CMMT committed up to RM35.0 million in rental relief to help Affected Tenants to journey with them through this difficult period in FY 2020. In addition, CMMT also rolled out other initiatives, including flexible payment arrangement for rentals, flexible operating hours for 2 Shopping mall tenants providing non-essential services or supplies that were mandated to close during the Movement Control Order and the Conditional Movement Control Order. 29 BECAUSE TOMORROW MATTERS