SINGAPORE (THE BUSINESS TIMES) - CapitaLand Commercial Trust's (CCT) distribution per unit (DPU) fell by 23.2 per cent to 1.69 cents for its second quarter ended June 30, from 2.20 cents a year ago.

Gross revenue was down 8.1 per cent to $92.8 million for the quarter, from $101 million a year earlier.

Net property income (NPI) fell 9.7 per cent on the year to $70.8 million for the quarter, from $78.4 million.

For the quarter under review, contributions from Main Airport Center which was acquired in September 2019, as well as higher revenue from Gallileo, were offset by lower income from properties in Singapore that were affected by upgrading works, lower occupancies and rental waivers to tenants, the manager said in a regulatory filing on Thursday (July 23).

Main Airport Center is a freehold multi-tenanted office building near the Frankfurt International Airport, while Gallileo is a Grade A commercial building located in Frankfurt's central business district.

Income available for distribution to unitholders declined 28.2 per cent year on year to $59.2 million, from $82.4 million. This was due to lower net property income, reduced contribution from RCS Trust by $13.2 million, and payment of asset management fees for Asia Square Tower 2 in cash, the manager said.

As at June 30, CCT's portfolio includes Raffles City Singapore, held through its 60 per cent interest in RCS Trust.

Meanwhile, distributable income, which included the release of $6.4 million retained in Q1 2020, came in at $65.6 million, down 20.4 per cent from a year ago.

The distribution will be paid out on Aug 28, after books closure on Aug 3.

For the half year ended June 30, DPU was lower at 3.34 cents, versus 4.40 cents a year ago, and distributable income fell 21.7 per cent to $129.3 million.

Gross revenue was 2.2 per cent lower at $196.4 million, while NPI eased 4.5 per cent to $151.1 million for the half year.

Kevin Chee, chief executive officer of the manager, said: "CCT's Q2 2020 results reflected the impact of our portfolio repositioning and rental support for tenants amidst Covid-19. Retaining and supporting our tenants through the Covid-19 challenges remains a priority for CCT. To ensure that our portfolio maintains a sustainable path to future growth, we are focused on completing the asset enhancements of Six Battery Road and 21 Collyer Quay, as well as the development of CapitaSpring in 2021."

Units in CCT closed flat at $1.76 on Wednesday.