CCT's Q3 DPU up 2.9% to 2.10 Singapore cents

Mindy Tan
Published Thu, Oct 23, 2014 · 11:59 PM
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CapitaCommercial Trust's (CCT) distribution per unit (DPU) for the third quarter rose 2.9 per cent, from 2.04 to 2.10 Singapore cents, on the back of a 4.8 per cent jump in distributable income, from S$58.8 million to S$61.6 million.

This was computed on the assumption that none of the outstanding CB 2015 or CB 2017 were converted into CCT units.

Accordingly,the actual quantum of DPU may differ if any of the convertible bonds had been converted into CCT units.

The DPU will be paid out in February 2015, as CCT distributes this semi-annually. Based on its closing price per unit of S$1.625 on Oct 23, CCT's distribution yield is 5.2 per cent.

For the quarter under review, net property income rose 8.6 per cent, from S$47.8 million to S$51.9 million. Gross revenue rose 8.4 per cent, from S$61.3 million to S$66.4 million.

Lynette Leong, the chief executive officer of the manager, said: "CCT's portfolio committed occupancy rate is high at 99.4 per cent, which is above the market occupancy rate of 96.6 per cent in Q3 2014. Even with the high occupancy rate, we signed new leases and renewals of approximately 131,000 square feet, of which 17 per cent were new leases.

"The overall signing rents for CCT's Grade A office leases in Q3 2014 are higher than the expiring rents. As a result, the monthly average office rent of CCT's portfolio increased by 4.9 per cent over the past 12 months from S$8.03 to S$8.42 per square foot."

Additionally, leases have been secured for an additional 114,500 sq ft of space at CapitaGreen, bringing the aggregate leasing commitment to 279,500 sq ft or 40 per cent of the building's net lettable area.

Ms Leong added that the Reit was in advanced stages of negotiation for another 75,000 sq ft of space, positioning it well to achieve its 50 per cent target leasing commitment by the end of the year.

CCT's results were released before the start of trading on Friday.

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