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CapitaLand Commercial Trust (CCT) posted healthy financial results in Q2 2015 and the first half of the year due to resilient portfolio performance, announced its manager in an SGX filing.
In the second quarter, its gross revenue rose by 5.0 percent to S$69.11 million compared to S$65.83 million in Q2 2014, while net property income (NPI) increased by 3.6 percent from S$52 million to S$53.86 million.
At the same time, the trust’s distributable income and distribution per unit (DPU) posted an uptick of 0.5 percent each to hit S$64.42 million and 2.19 cents respectively.
For 1H 2015, CCT’s gross revenue climbed by 5.7 percent to S$137.28 million versus S$129.83 million in the corresponding period last year, with NPI growing by 5 percent from S$102.7 million to S$107.83 million.
Consequently, distributable income edged up by 2.5 percent to S$127.18 million on an annual basis, while DPU improved by 5.1 percent to 4.31 cents due to higher earnings from the trust’s wholly-owned properties and the 60-percent-owned Raffles City Singapore.
“We are pleased that CCT has delivered a continued rise in DPU over the first half of 2015,” said Lynette Leong, CEO of CapitaLand Commercial Trust Management Ltd.
“Continued growth in CCT’s portfolio occupancy rate to 98 percent and increase in monthly average office portfolio gross rent to S$8.88 per sq ft reflect the resilience of CCT’s portfolio,” she added.
According to Credit Suisse, the better DPU for 1H 2015 was within its estimates, while the 5.7 percent gain in gross revenue was driven by higher rents at all of the trust’s properties except for Twenty Anson.
Moreover, CCT’s portfolio occupancy rate rose by 1 percentage point to 98 percent at the end of Q2 as CapitaGreen’s occupancy level increased to 80.4 percent from 69.9 percent a quarter ago.
However, occupancy could fall in Q3 2015 as Mizuho is set to vacate its 65k sq ft space in Capital Tower to relocate to Asia Tower after the expiration of its lease on 30 June.
Image source: CapitaLand Commercial Trust’s CapitaGreen
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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