CCT reports 13% fall in DPU for Q4 on lower net property income, rights issue

CAPITALAND Commercial Trust (CCT), which earns income through commercial properties such as Capital Tower and Six Battery Road, on Thursday reported a 13 per cent fall in its distribution per unit (DPU) for its fiscal fourth quarter.

DPU for the three months ended Dec 31, 2017 stood at 2.08 Singapore cents, down from 2.39 Singapore cents from a year ago.

In fiscal 2017, CCT's unit base was enlarged, following a rights issue, a conversion of debt to equity, and an issuance of new units for management fees. On an adjusted basis, DPU would have risen 6.1 per cent.

But to be clear, the DPU for the fourth quarter restated for rights issue alone was still down from a year ago, falling by 10.7 per cent.

Net property income fell 4 per cent to S$68 million, due to divestments of its stake in One George Street, Golden Shoe Car Park and Wilkie Edge.

The impact was slightly offset by higher net property income from CapitaGreen and contribution from newly acquired Asia Square Tower 2.