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CapitaLand Commercial Trust (CCT) saw its distribution per unit (DPU) drop four percent in Q2 2018 to 2.16 cents due to an enlarged unit base.
This comes as CCT issued 130.0 million new units for equity placement to partially fund its acquisition of Gallileo, a Grade-A office building in Frankfurt, Germany.
The trust’s DPU for Q2 2017 and 1H 2017 were restated for the rights issue, whereby 513.5 million units were issued on 26 October 2017. Restated for the rights issue, Q2 2018 DPU fell 1.6 percent from 2.19 cents last year.
On an adjusted basis, DPU climbed 14.3 percent year-on-year.
Distributable income rose 14.3 percent to $79.4 million, mainly due to contributions from CapitaGreen and Asia Square Tower 2, which offset the divestments of Golden Shoe Car Park, Wilkie Edge and One George Street.
Gross revenue grew 12 percent to $98 million, while net property income increased 12.5 percent to $77.7 million.
On a half-yearly basis, CCT’s distributable income rose 10.8 percent to $156 million while gross revenue and net property income climbed 9.8 percent and 11.5 percent to $194 million and $155 million, respectively.
“Based on the annualised 1H 2018 DPU and CCT’s closing price per unit of $1.76 on 18 July 2018, CCT’s distribution yield is 4.9 percent,” said CCT’s manager in an SGX filing.
“For the quarter under review, we pushed ahead with our value creation strategy to generate sustainable growth for CCT,” said Kevin Chee, CEO of CCT’s manager.
“Our multipronged approach encompasses proactive management of existing operational assets to achieve organic growth; portfolio reconstitution through redevelopment and divestment to enhance and unlock value from our properties; disciplined acquisition of quality assets that offer strategic fit with the portfolio; and proactive capital management to diversify funding sources and manage cost of borrowings in support of growth initiatives.”
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