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Stocks to watch: CapitaLand Commercial Trust, Keppel Reit
CAPITALAND Commercial Trust (CCT) on Wednesday reported an estimated distribution per unit (DPU) of 2.27 Singapore cents for the second quarter, which is 3.2 per cent above the Q2 2016 DPU of 2.20 Singapore cents, underpinned by the strong performance of CapitaGreen.
For the three months ended June 30, 2017, the trust's distributable income grew 6.7 per cent to S$69.5 million in Q2 2017. Year on year, Q2 2017 gross revenue increased by 29.5 per cent to S$87.5 million and net property income increased by 34.3 per cent to S$69.1 million.
CapitaLand Commercial Trust Management Limited, the manager of CCT, said that the estimated adjusted DPU of 2.27 Singapore cents for Q2 2017 and 4.59 Singapore cents for H1 2017 were computed based on total units in issue of 3,061 million as at July 14, 2017. Based on the annualised H1 2017 DPU and CCT's closing price per unit of S$1.69 on July 18, CCT's distribution yield is 5.5 per cent.
KEPPEL Reit reported on Tuesday that its distribution per unit (DPU) slid to 1.42 Singapore cents from 1.61 Singapore cents in the previous year, as lower revenue and net property income from Bugis Junction Towers hurt results in the second quarter.
The total DPU for H1 2017 was 2.87 Singapore cents, less than the 3.29 Singapore cents paid out the year before.
The trust cited reasons such as the absence of income from 77 King Street in Sydney that was divested in 2016, lower income contribution from Bugis Junction Towers, and the absence of "other gains" such as divestment proceeds in the period for the quarter's weaker performance.
Keppel Reit closed trading at S$1.17 on Tuesday.