Signing new and renewed leases at above-market prices gave a modest upward nudge to CapitaLand Commercial Trust's (CCT) performance in the second quarter.
Revenue increased by 5 per cent year-on-year to $69.1 million while net property income grew from $52 million last year to $53.9 million this year, a rise of 3.6 per cent.
Total distributable income rose slightly, from $64.1 million to $64.4 million, lifting distribution per unit (DPU) by 0.5 per cent to 2.19 cents.
The portfolio's occupancy rate stood at 98 per cent. Ms Lynette Leong, chief executive of CapitaLand Commercial Trust Management, said spreading out a good portion of leases to an expiration date of 2018 and beyond "will tide (us) over the large office supply expected in 2016". However, she acknowledged that the expected surge in supply presented "potential headwinds" for the real estate investment trust (Reit).
The recently completed CapitaGreen tower in Market Street is "a potential acquisition pipeline" for CCT, said the Reit's management. It owns a 40 per cent stake and has the option to acquire the balance from its joint-venture partners.
AT A GLANCE
GROSS REVENUE: $69.1 million (+5%)
NET PROPERTY INCOME: $53.9 million (+3.6%)
DISTRIBUTION PER UNIT: 2.19 cents (+0.5%)
Gross revenue grew by 5.7 per cent to $137.3 million for the six months to June 30 compared with the previous year while net property income increased 5 per cent to $107.8 million.
Total distributable income for the half year rose 2.5 per cent to $127.2 million. CCT units closed up one cent at $1.48 yesterday.