CapitaLand Commercial Trust distributable income up 2.6% to $63.2m

SINGAPORE - CapitaLand Commercial Trust reported a steady set of results on Wednesday, with both income and distributions rising slightly.

The trust, which is the largest commercial trust here, also continued to report high levels of occupancy rates although it flagged rising office supply as a potential challenge in the months ahead.

CCT said that its net income rose 1.5 per cent to $52.7 million over the year.

Distributable income also rose 2.6 per cent to $63.2 with distributions per unit at 2.14 cents, a rise of 2.4 per cent over the year.

Annualised yield is about 6 per cent, based on CCT's current share price of $1.44.

Gearing levels remained low at about 30 per cent.

CCT has signed about 226,0000 square feet of new leases and renewals, of which 36 per cent are new leases.

Chief executive of CCT's manager Lynette Leong said that there are potential headwinds ahead, with an increase in office supply in the second half of 2016.

"Retention of strategic tenants and attracting new tenants to our portfolio of properties remain our priority," she said.

"In addition, with debt headroom of S$1.3 billion assuming 40 per cent gearing, CCT has the financial flexibility to execute potential growth opportunities."

The total value of CCT's deposited properties is $7.7 billion as at 30 September 2015, comprising a portfolio of 10 prime commercial properties in Singapore.

The properties in Singapore are Capital Tower, Six Battery Road, One George Street, Raffles City Singapore (60 per cent interest through RCS Trust), CapitaGreen (40 per cent interest through the joint venture, MSO Trust), HSBC Building, Twenty Anson, Bugis Village, Wilkie Edge and Golden Shoe Car Park.