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CCT Q4 DPU up by 10.1% to 2.39 SGD cents

CAPITALAND Commercial Trust (CCT) on Wednesday posted a distribution per unit (DPU) of 2.39 Singapore cents for the financial quarter ended Dec 31 (Q4 2016). This translates to a 10.1 per cent increase from 2.17 cents a year ago.

Distributable income went up by 10.4 per cent to S$70.8 million, up from S$64.1 million a year ago.

For the financial year 2016, CCT's DPU increased by 5.3 per cent year on year to 9.08 Singapore cents, translating to a yield of 5.8 per cent based on Tuesday's closing price.

As at Dec 31, 2016, 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 MSO Trust and 60 per cent interest in Raffles City Singapore held through RCS Trust.

In Q4, gross revenue grew by 32.7 per cent to S$89.7 million and net property income (NPI) went up by 35.4 per cent to S$70.8 million.

CCT said that the increase in gross revenue and NPI for Q4 2016 was a result of CapitaGreen's contribution after becoming a wholly owned property of the Trust. It in turn arose from CCT's acquisition of the remaining 60 per cent interest in MSO Trust that owns CapitaGreen which completed on Aug 31, 2016. The estimated DPU for the financial period July 1, 2016 to Dec 31, 2016 (H2 2016) is 4.69 Singapore cents. The H2 2016 DPU is expected to be paid on Feb 27,2017 as CCT pays its distributable income semi-annually.

Soo Kok Leng, chairman of the manager, said: "Our proposed redevelopment of Golden Shoe Car Park represents another value creation opportunity which will potentially further strengthen CCT's foothold and position as the largest office landlord in Singapore's Central Business District."

CCT has no refinancing requirements in 2017 except for the S$175 million convertible bonds due September 2017.

CCT said: "In 2017, we may continue to see tenants' flight to better quality office space and downward pressure on rents caused by stiff competition among landlords. While negative rent reversions are expected to continue, CCT's DPU for FY 2017 is, nevertheless, expected to be stable barring unforeseen circumstances, and supported by the income contribution from CCT's 100 per cent ownership in CapitaGreen."

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