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CCT posts 3.8% rise in Q1 DPU to 2.2 Singapore cents

CAPITALAND Commercial Trust (CCT) on Thursday posted a 3.8 per cent increase in distribution per unit (DPU) to 2.2 Singapore cents for its first quarter ended March 31, up from 2.12 cents paid out a year ago.

This came on the back of a 8 per cent rise in distributable income to S$82.7 million, mainly due to better performance of the trust's portfolio as well as its distribution of tax-exempt income of S$3.4 million, which it didn't have a year ago.

Net property income rose 3.4 per cent to S$79.8 million, while gross revenue rose 3.5 per cent to S$99.8 million, mainly contributed by its properties Gallileo, acquired in June 2018, and higher occupancy at Asia Square Tower 2, which offset the loss in revenue from the sale of Twenty Anson last August.

Gallileo is a freehold Grade-A commercial property located in the prime central business district of Frankfurt, Germany. CCT holds a 94.9 per cent stake in it, while CapitaLand holds the remaining 5.1 per cent.

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The trust said that both the purchase of Gallileo and divestment of Twenty Anson mitigated the flow-through of negative rental reversions from leases committed last year, for instance at CapitaGreen. Lower occupancy at Six Battery Road also led to lesser rent collected at the property.

In its first quarter, CCT signed over 225,000 square feet of new leases and renewals, of which 18 per cent were new leases. To date, more than half of 2019 expiring leases have already been committed.

"However, the negative rent reversions for leases signed in prior quarters are expected to flow through as seen in the year-on-year gross revenue for CapitaGreen and Six Battery Road in Q1 2019. This may impact overall portfolio revenue growth in 2019," it said.

CCT's portfolio occupancy rate was 99.1 per cent as at end-March 2019. Units of CCT closed flat at S$1.93 on Thursday.