CapitaLand Commercial Trust (CCT) posted a lower distribution per unit (DPU) of 2.12 cents in the first quarter, down from 2.4 cents in the same period a year earlier.
This was due to an enlarged number of CCT units arising from the issue of new units from a rights issue last October, conversion of convertible bonds in fiscal 2017, and the issue of units for management fees.
DPU for the three months ended March 31 was 2.12 cents, down from 2.34 cents in the first quarter last year when adjusted for the rights issue.
CCT's distributable income for the first quarter was 7.5 per cent higher at $76.6 million due to the contribution from Asia Square Tower 2, as well as higher net property income from Capital Tower and 6 Battery Road.
Higher distribution from MSO Trust, which holds CapitaGreen, also contributed to the increase.
CCT's net property income for the first quarter was 10.5 per cent higher at $77.2 million.
AT A GLANCE
GROSS REVENUE: $96.4 million (+7.7%)
NET PROPERTY INCOME: $77.2 million (+10.5%)
DISTRIBUTION PER UNIT: 2.12 cents (-11.7%)
Gross revenue for the quarter was $96.4 million, up 7.7 per cent from the year before. This was attributed to a full-quarter contribution from Asia Square Tower 2 and higher gross revenue from CapitaGreen, which offset the loss in gross revenue due to the divestments of One George Street (50 per cent interest), Golden Shoe Car Park and Wilkie Edge.
The trust has also received confirmation from the Singapore authorities that Bugis Village will be taken back on April 1 next year. When Bugis Village is returned to the state, CCT will receive compensation of $6.6 million plus accrued interest compounded from 1989.
Bugis Village accounted for about 2.2 per cent of CCT's first-quarter net property income.
For the quarter, CCT's portfolio committed occupancy rate was 97.3 per cent.
Mr Kevin Chee, chief executive of CapitaLand Commercial Trust Management, CCT's manager, said: "With a focus on achieving a balance between higher rentals and lower vacancy, we will also leverage the momentum of rising office market rents to manage our lease expiries in the upcoming years."
He added: "To continue delivering sustainable distribution growth, CCT will also look at core assets in select global gateway cities across developed markets, in addition to exploring opportunities in Singapore."
The group has also secured its first tenant, JP Morgan, for CapitaSpring, its upcoming integrated development in the Central Business District. JP Morgan is taking up close to a quarter of the development's net lettable area, Mr Chee said. CapitaSpring is scheduled for completion in the first half of 2021.
CCT closed two cents lower at $1.80 yesterday.