CapitaCommercial Trust’s (CCT) distributable income increased 1.6
percent to S$58.8 million in the third quarter this year from S$57.9
million in Q3 2012. This is primarily due to lower interest expenses in
the quarter and distribution of tax-exempt 1H2013 distributable income
from Quill Capita Trust.
At the same time, distribution per unit
(DPU) stood at 2.01 cents, which works out to a 5.7 percent distribution
yield based on the closing price of S$1.42 on 17 October.
Meanwhile,
gross revenue fell to S$94.9 million in Q3 from S$95.5 million over the
same period last year, while net property income declined 3.5 percent
to S$72.6 million from S$75.2 million previously. Nonetheless, CCT’s
portfolio operating margin remained within the range of 75 to 80
percent.
Kee Teck Koon, Chairman of the trust’s manager, said:
“CCT’s portfolio has performed well in the third quarter despite the
cessation of One George Street’s yield protection income in July 2013
and the uncertain economic environment.”
He added: “Our
intensified marketing and leasing efforts have translated into higher
committed portfolio occupancy rate of 97.6 percent as at 30 September
2013. Higher rents have also been secured for most new leases and
renewals for the year to date. CCT will enjoy the full impact of this
positive rent reversion flow-through in 2014. We will continue with our
current strategies to harness organic growth from our property
portfolio, and create growth from our 40.0 percent interest in the
CapitaGreen development for the benefit of CCT unitholders.”
CapitaGreen is a Grade A office development that is set to be completed in Q4 2014.
Image: Artist’s impression of CapitaGreen.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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