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CapitaLand Commercial Trust (CCT) announced on Friday (26 Oct) that its gross revenue jumped 35.6 percent year-on-year to $100.51 million in the third quarter ended 30 September 2018, while net property income (NPI) rose sharply by 37.3 percent to $80.397 million.
The robust growth is primarily attributed to the acquisitions of Asia Square Tower 2 at Marina Bay (pictured) and a 94.9 percent stake in Gallileo tower in the banking district of Frankfurt, Germany. However, the gain was partially offset by the sale of Twenty Anson and Wilkie Edge.
As a result, distributable income increased 13.1 percent to $82.685 million on an annual basis, whereas distribution per unit (DPU) grew 8.9 percent from 2.02 cents to 2.20 cents.
“The strategic acquisitions of Asia Square Tower 2 and Gallileo boosted CCT’s distributable income in 3Q 2018, underscoring the Trust’s consistent and proactive efforts in portfolio reconstitution. Since assuming ownership of Asia Square Tower 2, CCT has ramped up its occupancy from 90.5 percent as at 31 December 2017 to 98.1 percent as at 30 September 2018,” said Kevin Chee, CEO of CapitaLand Commercial Trust Management.
“Across CCT’s Singapore portfolio, committed occupancy as at 30 September 2018 was 99.1 percent, well above the market occupancy level of 94.6 percent. As at end-September 2018, 81 percent of CCT’s attributable portfolio net lettable area is in Grade A assets.”
In the quarter under review, CCT entered into new and renewal leases for around 448,000 sq ft of space, of which 27 percent are new. New rental demand originated from firms involved in financial services, business, consultancy, information technology, media and telecommunications, as well as real estate and property services.
In addition, all lease renewals for this year have been concluded, while 12 percent of lease renewals (based on gross monthly rental income) for next year were completed. The latter includes the lease extension for HSBC at 21 Collyer Quay until April 2020.
Touted as the first and biggest commercial REIT, CCT has a market capitalisation of around $6.5 billion. Its assets comprise nine prime commercial properties in Singapore and one in Frankfurt.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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