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CapitaLand Commercial Trust (CCT) has declared a distribution per unit (DPU) of 2.19 cents for 1Q 2016. This is 3.3% above the 1Q 2015 DPU of 2.12 cents.
Based on the annualised 1Q 2016 DPU and CCT’s closing price per unit of $1.42 on Thursday, CCT’s distribution yield is 6.2%.
The trust’s distributable income of$64.8 million in 1Q16 was 3.3% higher than the $62.7 million achieved in 1Q15. This was largely due to higher distributable income from its 40% and 60% interests in CapitaGreen and Raffles City Singapore respectively, said CapitaLand Commercial Trust Management, the manager of CCT.
Gross revenue came in 1.9% lower at $66.9 million while net property income came in 3.6% lower at $52 million, the latter mainly due to higher property tax and lower occupancy rate at Capital Tower year-on-year.
Lynette Leong, CEO of the manager, says, “Maiden income contribution from CCT’s 40% interest in CapitaGreen and more distribution from CCT’s 60% interest in Raffles City Singapore have enabled us to deliver higher growth in DPU for 1Q 2016 vis-a-vis 1Q 2015. Despite headwinds in the Singapore office market, CCT’s portfolio committed occupancy rate of 98.1% in 1Q 2016 remains above market occupancy of 95.1%. This includes CapitaGreen’s higher occupancy rate of 92.8% and Capital Towers improved occupancy to 98.1%. The key debt maturity in 2016 is Raffles City Singapore’s borrowings in June and we have already obtained unsecured bank facilities to refinance it.”
As at 31 March 2016, CCT’s total deposited property value including other assets was $7.7 billion. The net asset value per unit as at end March was $1.72, after adjusting for 1Q 2016 distributable income.
This article first appeared in The Edge Singapore Market Report.