CapitaLand commercial trust posts 66.6% rise in Q1 net property income to $247.1m

Gross revenue rose 63.9 per cent year on year to S$334.8 million from S$204.3 million in Q1 2020.
Gross revenue rose 63.9 per cent year on year to S$334.8 million from S$204.3 million in Q1 2020.PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - CapitaLand Integrated Commercial Trust (CICT) saw its net property income (NPI) rise 66.6 per cent in the first quarter ended March 31, 2021, to $247.1 million from $172.1 million a year ago, reported its manager in a business update on Monday morning (April 26).

Gross revenue rose 63.9 per cent year on year to $334.8 million from $204.3 million in the first quarter of 2020.

The improved revenue and NPI for the first quarter were mainly due to higher integrated development performance compared with the previous year, as well as after factoring in income contribution from office assets starting from Oct 21, 2020.

As at March 31, 2021, CICT's committed portfolio occupancy stood at 95.9 per cent.

The real estate investment trust's (Reit) retail occupancy stood at 97.1 per cent with shopper traffic recovering to 74.3 per cent of the level a year ago, while tenants' sales for the first quarter grew 2.9 per cent.

Office occupancy was 94.9 per cent, boosted by a 5.3 per cent increase in total new and renewal leases to 291,800 sq ft for the quarter.

Occupancy rate of integrated developments stood at 96.5 per cent as at end-March 2021, with a weighted average lease expiry by monthly gross rental income of five years.

Overall, CICT's portfolio weighted average lease expiry stood at 3.1 years based on the Reit's 50 per cent interest in One George Street; 94.9 per cent interest in Galileo and Main Airport Centre, Frankfurt; and WeWork's seven-year lease at 21 Collyer Quay.

After issuing two long tenor notes through its $7 billion multi-currency medium term note programme in the first quarter, the trust's average term to maturity has been extended to 4.4 years as at end-March 2021, compared with 4.1 years as at end-2020.

In its business update, the Reit manager said CapitaSpring is on track to complete in the second half of 2021. The upcoming integrated development in Raffles Place has achieved a committed occupancy of 50 per cent as at April 15, 2021 - with another 15 per cent under advance negotiation, it added.

As at 9.07am on Monday, CICT units were trading two cents or 0.9 per cent higher at $2.19.