CapitaLand Commercial Trust sees 0.5% rise in Q2 DPU

A labourer walks in front of a Capitaland logo at a construction site in Singapore, on Oct 31, 2008.
A labourer walks in front of a Capitaland logo at a construction site in Singapore, on Oct 31, 2008.PHOTO: BLOOMBERG

SINGAPORE - CapitaLand Commercial Trust (CCT) reported on Wednesday (July 20) a 0.5 per cent rise in distribution per unit (DPU) to 2.20 Singapore cents for the quarter ended June 30, from 2.19 cents for the year-ago period.

Distribution to unitholders rose 1 per cent to S$65.09 million from a year ago despite a 4.5 per cent fall in net property income to S$51.45 million.

The bottomline instead was boosted by higher income distributions from CCT's 40 and 60 per cent interest respectively in CapitaGreen and Raffles City Singapore.

For the first half-year, DPU was 4.39 cents, 1.9 per cent higher than the 4.31 cents a year ago on a 2.2 per cent rise in distributable income to S$129.93 million.

Said Ms Lynette Leong, chief executive officer of CCT's manager: "Despite the muted macro-economic environment and challenging office market conditions in Singapore, CCT's portfolio occupancy rate of 97.2 per cent remains higher than market occupancy rate of 95.1 per cent in 2Q 2016.

"In 1H 2016, we have successfully renewed or signed new leases with high quality tenants, which included that of the Economic Development Board of Singapore, one of CCT's top 10 tenants. This leaves only 4 per cent of office leases to be renewed this year and 10 per cent of office leases due in 2017, as we proactively retain tenants and attract new ones."

Ms Leong also noted that CCT's net property income from the the fourth quarter onwards will be boosted by the 100-per-cent income contribution from CapitaGreen upon the completion of its acquisition of a 100-per-cent interest in the development from its joint venture partners.

"This will help to mitigate any downside risk to portfolio performance due to the current weak office market," she said.