Friday, July 24, 2015

CapitaLand Commercial Trust's 1H DPU up 2.1% to 4.31 cents on higher rents

CapitaLand Commercial Trust has reported a distribution per unit (DPU) of 2.19 cents for the financial quarter ended June 30, 2015 (2Q15).

For 1H15, CCT attained a DPU of 4.31 cents, a 2.1% increase y-o-y due to higher rents achieved across its portfolio.

Based on CCT’s closing price per unit of $1.47 on 23 July 2015 and the annualised 1H15 DPU, CCT’s distribution yield is 5.9%.

Year-on-year, the 2Q15 distributable income of $64.4 million is stable, whereas that of 1H15 grew by 2.5% to $127.2 million.

The latter is due to 3.6% higher net property income (NPI) of $53.9 million from the trust’s wholly-owned properties and more distributable income from its 60% interest in Raffles City Singapore.

Gross revenue rose 5% to $69.1 million from $65.8 million.

As at June 30, 2015, aggregate committed occupancy at CapitaGreen rose to 80.4%.

In anticipation of the relatively large new office supply in 2016 and 2017, the manager of CapitaLand Commercial Trust says it has actively been reducing the amount of lease expiries in 2016 and 2017 as well as extracting operational efficiencies in property management since 2014.

In 2Q 2015, CCT signed 179,000 sf of new leases and renewals, of which 57% are new leases.

CCT’s monthly average office portfolio gross rent grew 1.1% over the quarter from $8.78 psf as at end March 2015 to $8.88 psf as at end June 2015.

Among the Trust’s Grade A properties, One George Street and Six Battery Road achieved monthly rents in the range of $12.50 psf and $14.80 psf. CapitaGreen achieved monthly rents between $12.05 psf to $16.00 psf.

Units of CCT closed 1 cent lower at $1.47 on Thursday.

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