Capitaland Commercial Trust Q3 DPU up 7.5% to 2.3 Singapore cents

CAPITALAND Commercial Trust (CCT) on Wednesday posted a distribution per unit (DPU) of 2.30 Singapore cents for the financial quarter ended Sept 30 (Q3 2016). This marks a year-on-year DPU growth of 7.5 per cent from last year's 2.14 cents.

Distributable income increased by 8.1 per cent to S$68.3 million, up from S$63.15 million a year ago.

As at September, CCT's portfolio comprises Capital Tower, Six Battery Road, One George Street and HSBC Building.

Gross revenue for Q3 grew 8.9 per cent to S$74.4 million and net property income grew 8.3 per cent to S$57 million. CCT said that the increase was due to CapitaGreen's 100 per cent contribution since the completion on Aug 31 of CCT's acquisition of a 60 per cent stake in MSO Trust, which owns CapitaGreen, a Grade A office building.

CCT added that the completion of the acquisition of CapitaGreen was ahead of the projected date of Oct 1, as stated in CCT's circular to unitholders dated June 21. In addition to CapitaGreen's substantially higher contribution (from September 2016), CCT's 60 per cent interest in Raffles City Singapore also registered additional contribution to CCT's Q3 distributable income.

CCT said: "The completion of CapitaGreen's acquisition has given CCT's DPU a boost this quarter and will continue to contribute to CCT group's performance. The redevelopment of CapitaGreen from the former Market Street Car Park is a testament to CCT's successful execution of portfolio reconstitution strategy."

CCT added that "with the hope of repeating the same success as CapitaGreen", it will redevelop Golden Shoe Car Park (GSCP) into a higher-value commercial development which will include an office tower.

The redevelopment could potentially create commercial gross floor area of approximately one million sq ft and comprise an office tower of up to 280 m above ground. A new food centre owned by the government is expected to replace the existing food centre and adjoin the new office tower.

The redevelopment is subject to the authorities' approval for the conversion of the current zoning of "transport" to "commercial", subject to payment of a differential premium and rezoning of the Master Plan.

The operation of GSCP car park and commercial space will cease by July 31, 2017.