CapitaCommercial Trust posts 2.9% rise in distribution per unit for Q3

SINGAPORE – CapitaCommercial Trust Managment (CCT) today (Oct 24) announced a distribution per unit (DPU) of 2.1 cents for the third quarter, a 2.9 per cent increase from the same quarter last year. This works out to a distribution yield of 5.2 per cent based on its closing price of S$1.625 on Thursday.

The higher DPU came on the back of a 4.8 per cent rise in distributable income of S$61.6 million for the quarter ended September. CCT attributed this to strong performance in its gross revenue, which rose 8.4 per cent to S$66.4 million, and net property income which increased 8.6 per cent to S$51.9 million.

CCT CEO Lynette Leong said in a statement that its committed occupancy rate is at 99.4 per cent, above the market occupancy rate of 96.6 per cent in the third quarter. Still, CCT signed new leases and renewals of about 131,000sqf, of which 17 per cent are new leases.

“The overall signing rents for CCT’s Grade A office leases in 3Q 2014 are higher than the expiring rents. As a result, the monthly average office rent of CCT’s portfolio increased by 4.9 per cent over the past 12 months from S$8.03 to S$8.42 per square foot,” said Ms Leong.

Looking ahead, CCT said that the tight supply in the core CBD market is expected to continue through to the first half of 2016. Office leases, which account for 18 per cent of CCT’s portfolio gross rental income, will be up for renewal in 2015.

CCT added that there is potential rental upside in the continued positive market conditions. CHANNEL NEWSASIA