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CapitaLand Commercial Trust's Q2 DPU up 0.5%

CAPITALAND Commercial Trust (CCT) on Friday posted a second-quarter distribution per unit (DPU) of 2.19 Singapore cents, up 0.5 per cent year on year.

Income available for distribution for the three months to June 30, 2015, also inched up 0.5 per cent from the previous year to S$ 64.43 million, it said in a Singapore Exchange filing.

Net property income rose 3.6 per cent to S$53.86 million while gross revenue grew 5 per cent to S$69.11 million over the same period.

Revenue expanded due to rent increases or higher occupancy rates at CCT's properties, the trust said in a statement.

Its portfolio occupancy rate was 98 per cent in the second quarter. Its monthly average office portfolio gross rent has also gone up to S$8.88 per square foot (psf) as at June 30 from S$8.78 psf as at March 31, 2015.

Lynette Leong, chief executive officer of the trust's manager, noted in a statement that the trust's balance sheet remains robust with a gearing of 29.5 per cent and it has the financial flexibility for acquisitions, having a debt headroom of S$1.3 billion assuming 40 per cent gearing.

"In anticipation of the relatively large new office supply in 2016 and 2017, we have been focusing our efforts on driving stable and sustainable financial performance. Since 2014, we have been actively reducing the amount of lease expiries in 2016 and 2017 as well as extracting operational efficiencies in property management. We are also exploring new, flexible alternatives of office space utilisation to generate new demand for the trust's space," she added.

CCT units ended a cent lower at S$1.47 on Thursday.