CapitaLand Commercial Trust posts 2.6% rise in Q3 DPU to 2.36 cents

Its net property income rose 2.7 per cent to S$58.56 million as lower operating expenses, such as property tax, offset lower revenue.
Its net property income rose 2.7 per cent to S$58.56 million as lower operating expenses, such as property tax, offset lower revenue. PHOTO: ST FILE

SINGAPORE - CapitaLand Commercial Trust (CCT) said on Friday (Oct 20) that its distribution per unit (DPU) rose 2.6 per cent to 2.36 Singapore cents for the three month to Sept 30, 2017, from the same period a year ago.

Distributable income for the quarter rose 7 per cent year on year to S$73.1 million due to stronger performance from CapitaGreen and a S$3.3 million top up for the loss of distributable income arising from the divestments of 50-per cent interest in One George Street and Wilkie Edge.

Net property income rose 2.7 per cent to S$58.56 million as lower operating expenses, such as property tax, offset lower revenue.

Revenue dipped 0.4 per cent S$74.15 million, due to the divestments of One George Street, Golden Shoe carpark and Wilkie Edge.

Gooing forward, CCT's trust manager said indications are office market rents may have bottomed out. However, it expeccts lower net property income in financial year 2018 at select properties in its current portfolio due to the flow-through of negative rent reversions of leases committed in 2017 and potentially continued negative rent reversions in 2018.