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CapitaLand Commercial Trust (CCT) saw its distribution per unit (DPU) increase by 7.5 percent year-on-year to 2.30 cents in the third quarter of 2016.
Based on CCT’s closing price per unit of S$1.555 on 18 October, the trust’s distribution yield stands at 5.7 percent.
Gross revenue for Q3 2016 climbed 8.9 percent to S$74.4 million while net property income (NPI) increased by 8.3 percent to S$57 million.
In a release, CCT attributed the increase to CapitaGreen’s 100 percent contribution to gross revenue and NPI since the completion on 31 August of its acquisition of 60 percent stake in MSO Trust, which is the owner of premium Grade A office building CapitaGreen.
Moreover, CCT’s 60 percent interest in Raffles City Singapore also registered additional contribution to its distributable income for Q3 2016, which grew 8.1 percent to S$68.3 million.
Lynette Leong, chief executive officer of the trust’s manager, noted that despite market headwinds, CCT’s portfolio remained resilient in Q3 2016, with 97.4 percent occupancy rate which is higher compared to the market occupancy rate of 95.9 percent.
“Through proactive leasing efforts, negotiations for almost all leases expiring this year have been concluded. Only eight percent of office portfolio leases by committed net lettable area will expire in 2017, and remain to be renewed. We will continue with our proactive efforts to attract and retain tenants to mitigate leasing risk,” she added.
Meanwhile, CCT’s manager also revealed that it has submitted plans to the relevant government authorities to redevelop Golden Shoe Car Park into a higher-value commercial development.
The redevelopment of the 10-storey building at Raffles Place could potentially create commercial gross floor area of around one million sq ft. It will include an office tower of up to 280m above ground, which is on par with CBD’s tallest buildings.
With an area of 5,973 sq m, the site has a remaining leasehold land tenure of around 65 years expiring on 31 January 2081.
The redevelopment is expected to be completed by 2021.
Nikki De Guzman, Editor at PropertyGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg.
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