CapitaLand Commercial Trust (CCT) has posted a 9.6 per cent increase to 2.4 cents in distribution per unit (DPU) for the first quarter from 2.19 cents in the same period last year.
CCT's manager said revenue was boosted by the trust's acquisition of the remaining 60 per cent interest in CapitaGreen on Aug 31 last year, and higher year on year occupancy, in revenue terms, for CapitaGreen and Capital Tower.
Gross revenue for the quarter surged by 33.9 per cent to $89.5 million and net property income grew by 34.3 per cent to S$69.9 million.
CCT's distributable income for the three months ended March 31 rose 9.9 per cent to $71.3 million.
On the outlook for Singapore's office market this year, the Reit manager said the impending completion of new office developments, together with the increase in secondary stock from which tenants vacate and move to the new developments, will continue to exert downward pressure on office market rents.
AT A GLANCE
GROSS REVENUE $89.5 million (+33.9%)
DISTRIBUTABLE INCOME $71.3 million (+9.9%)
DISTRIBUTION PER UNIT: 2.4 cents (+9.6%)
"The net property income of some properties in CCT's portfolio are expected to soften in the later part of 2017 as more renewals and new leases are committed below expiring rents," it said.
"Notwithstanding challenging macroeconomic and office market conditions, CCT's committed occupancy rate of 97.8 per cent as at end March 2017 remains high and well above the market occupancy rate of 95.6 per cent," said the Reit manager's chief executive Lynette Leong.
She added that about 80 per cent of the trust's borrowings are pegged at fixed rates, "which offer greater certainty of interest expense in a rising interest rate environment".
Ms Leong also disclosed that CCT has obtained the Urban Redevelopment Authority's provisional permission for the proposed redevelopment of the Golden Shoe Car Park and is awaiting the Singapore Land Authority's assessment of the differential premium (DP) payable for the potential enhancement in land use.
"Only when the DP is known can we complete the feasibility study of the proposed redevelopment and determine whether or not to proceed with it," she noted.
CCT units yesterday ended one cent higher at $1.63.