SINGAPORE - CapitaLand Commercial Trust has posted an estimated distribution per unit (DPU) of 2.19 cents for the first quarter ended March 31, which is 3.3 per cent above that of the same period last year.
The Trust's distributable income of S$64.8 million in the first quarter of 2016 was 3.3 per cent higher than the S$62.7 million achieved in the first quarter of 2015, a filing on the Singapore Exchange website said. This was largely due to higher distributable income from its 40 per cent and 60 per cent interests in CapitaGreen and Raffles City Singapore respectively.
The better results were achieved notwithstanding lower gross revenue of S$66.9 million and net property income of S$52.0 million from CCT's wholly owned properties.
Ms Lynette Leong, chief executive officer of the manager, said, "Despite headwinds in the Singapore office market, CCT's portfolio committed occupancy rate of 98.1 per cent in the first quarter remains above market occupancy of 95.1 per cent... The key debt maturity in 2016 is Raffles City Singapore's borrowings in June and we have already obtained unsecured bank facilities to refinance it."
The statement also said that in the first quarter, an aggregate of 162,000 square feet of new leases and renewals were signed, more than half of which are new leases. A joint venture between CapitaLand Limited and Collective Works Pte Ltd has leased approximately 22,000 square feet on the 12th storey of Capital Tower to offer premium coworking spaces and, together with other new leases signed, brought Capital Tower's committed occupancy rate to 98.1 per cent as at March 31.
Looking ahead, the Trust said that Singapore's Core CBD occupancy rate remained stable at 95.1 per cent in the first quarter.Average monthly Grade A office market rent decreased from S$10.40 per sq ft in the fourth quarter of 2015 to S$9.90 per sq ft in the first quarter, it added.
"New above-normal office supply completing in second half of this year is expected to result in higher market vacancy levels," it added.