CapitaLand Commercial Trust's Q4 DPU rises 2.7% to 2.28 S cents

Singapore

CAPITALAND Commercial Trust's (CCT) distribution per unit (DPU) rose by 2.7 per cent to 2.28 Singapore cents on an enlarged unit base for its fourth quarter ended Dec 31, up from 2.22 Singapore cents a year ago.

Gross revenue was up 8.9 per cent at S$107.8 million for the quarter, from S$99 million previously.

The improved performance was due to higher gross revenue from 21 Collyer Quay, Capital Tower and maiden contribution from Main Airport Center in Frankfurt, Germany, from Sept 18, 2019, the real estate investment trust's manager said on Wednesday.

This increase was offset partially by lower revenue from Six Battery Road and Bugis Village.

Net property income (NPI) grew 3.3 per cent to S$81.9 million while distributable income increased by 5.5 per cent to S$87.6 million.

The distribution will be paid on Feb 28, after books closure on Jan 30.

For the full year, DPU was 2.1 per cent higher at 8.88 Singapore cents, and distributable income grew 4.9 per cent to S$337.6 million. Gross revenue was 4.7 per cent higher at S$412.3 million, while NPI rose 2.1 per cent to S$321.2 million.

CCT's portfolio occupancy as at Dec 31 was 98 per cent, with a "healthy" tenant retention rate at 82 per cent, the manager said. During the quarter, the trust leased out 398,000 square feet of space from renewals and new take-ups.

Separately, CapitaSpring - an integrated development set to be completed in the first half of 2021 - has had its committed occupancy increased to 34.8 per cent as at Dec 31.

CCT's aggregate leverage fell slightly to 35.1 per cent as at Dec 31, from 35.5 per cent as at Sept 30, due to higher deposited property value.

Trading in CCT units was halted before market open on Wednesday to facilitate the announcement of a proposed merger with CapitaLand Mall Trust.

Units of CCT last traded at S$2.13 on Tuesday.

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