Thursday, 18 June 2015

CapitaCommercial Trust Q1 distribution per unit rises 3.9%

CapitaCommercial Trust booked a distribution per unit of 2.12 Singapore cents in Q1 2015, up 3.9 per cent year-on-year from 2.04 cents.

SINGAPORE: CapitaCommercial Trust (CCT), Singapore’s largest office real estate investment trust (REIT), has reported a 3.9 per cent year-on-year rise in its distribution per unit (DPU) for Q1, on the back of higher net property income and distributable income.

The estimated DPU for the financial quarter ended Mar 31, 2015, was 2.12 Singapore cents, up from 2.04 cents a year ago, said CCT in a news release on Wednesday (Apr 22). The distribution yield was 5 per cent, based on the closing price per unit of S$1.725 on Apr 21 and an annualised Q1 2015 DPU.

The firm attributed the increase to higher net property income from its wholly-owned properties and more distributable income from its 60 per cent stake in integrated development Raffles City Singapore.

The net property income in Q1 2015 was S$53.9 million - 6.4 per cent higher than S$50.7 million in the same period a year ago. CCT's distributable income in Q1 2015 was S$62.8 million, up 4.7 per cent year-on-year from S$59.9 million.

CCT said its portfolio committed occupancy, including its new Grade A office building CapitaGreen, is 97 per cent, above the market occupancy rate of 96.1 per cent as at Mar 31, 2015. CCT also signed about 240,000 square feet of new leases and renewals in the latest quarter.

The monthly average office portfolio gross rent grew 2 per cent quarter-on-quarter, from S$8.61 per square foot at end-December 2014, to S$8.78 per square foot at end-March 2015. Its Grade A properties hit monthly rents of between S$12 and S$16 at CapitaGreen. 

Going forward, limited new office supply in 2015 may still result in rental growth this year, but the growth may be moderated by the expected large future supply due to be completed from Q2 2016 onwards, it added.


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