CapitaLand Commercial Trust Q1 DPU up 0.21 cents to 2.4 cents

CAPITALAND Commercial Trust reported an estimated distribution per unit of 2.40 Singapore cents for the first three months of 2017, 0.21 cents higher than the 2.19 cents reported the same period a year ago

Net property income (NPI) grew by 34.3 per cent to S$69.9 million, while gross revenue increased by 33.9 per cent to S$89.5 million. Distributable income rose 9.9 per cent to S$71.3 million.

Details of CCT's Q1 2017 financial results were detailed in a filing the trust manager provided to the Singapore Exchange on Wednesday before the opening of the market.

"The positive results are due to higher year-on-year occupancy, in revenue terms, for CapitaGreen and Capital Tower, as well as the consolidation of CapitaGreen's revenue and NPI to CCT Group in Q1 2017 following the trust's acquisition of the asset's remaining 60 per cent interest on Aug 31, 2016," said the trust manager.

It said Singapore's office market remains challenging in 2017, with downward rental pressure still an issue.

"The net property income of some properties in CCT's portfolio is expected to soften in the later part of 2017 as more renewals and new leases are committed below expiring rents," it said.

As at March 31, CCT's portfolio consists of Capital Tower, Six Battery Road, One George Street, HSBC Building, Bugis Village, Golden Shoe Car Park, Wilkie Edge, Twenty Anson, CapitaGreen held through wholly-owned MSO Trust and 60 per cent interest in Raffles City Singapore held through RCS Trust.

CCT closed 0.62 per cent higher on Tuesday at S$1.62.