CapitaLand Commercial Trust Q1 DPU down 11.7% at 2.12 Singapore cents

CAPITALAND Commercial Trust (CCT) posted a lower distribution per unit (DPU) of 2.12 Singapore cents for the first quarter from 2.40 Singapore cents the year before.

This was due to an enlarged number of CCT units arising from the issue of new units from a rights issue, conversion of convertible bonds in fiscal 2017, and the issue of units for management fees.

For the three months ended March 31, 2018, DPU restated for the rights issue for Q1 2018 was 2.12 Singapore cents, down from 2.34 Singapore cents for Q1 2017.

CCT's distributable income for Q1 2018 was 7.5 per cent higher at S$76.6 million due to contribution from Asia Square Tower 2 as well as higher net property income from Capital Tower and 6 Battery Road.

Higher distribution from MSO Trust that holds CapitaGreen also contributed to the increase.

CCT's net property income for Q1 2018 was 10.5 per cent higher at S$77.2 million.

Gross revenue for Q1 2018 was S$96.4 million, up 7.7 per cent from the year before. It was mainly due to contribution from Asia Square Tower 2 and higher gross revenue from CapitaGreen which offset the loss in gross revenue due to the divestments of One George Street, Golden Shoe Car Park and Wilkie Edge.

The trust has also received confirmation from the Singapore authorities that Bugis Village will be taken back on April 1, 2019. When Bugis Village is returned to the State, CCT will receive compensation based on S$6.6 million plus accrued interest compounded from 1989.

Bugis Village accounted for about 2.2 per cent of CCT's Q1 2018 net property income.

For Q1 2018, CCT's portfolio committed occupancy rate was 97.3 per cent.

Kevin Chee, CEO of CapitaLand Commercial Trust Management, the trust's manager, said: "With a focus on achieving a balance between higher rentals and lower vacancy, we will also leverage the momentum of rising office market rents to manage our lease expiries in the upcoming years.

"To continue delivering sustainable distribution growth, CCT will also look at core assets in select global gateway cities across developed markets, in addition to exploring opportunities in Singapore," he added.

CCT was trading two Singapore cents lower at S$1.80 as at 3.59pm.