SINGAPORE (July 19): The manager of CapitaLand Commercial Trust (CCT) has declared an estimated DPU of 2.27 cents for 2Q17 ended June, 3.2% higher compared to the DPU of 2.20 cents in 2Q16.
The estimated adjusted DPU was computed based on total units in issue of 3,061 million as at July 14 due to the progressive conversion of convertible bonds into new units.
Distribution to unitholders also increased 6.7% to $69.5 million in 2Q17 from $65.1 million the previous year. Gross revenue also increased by 29.5% to $87.5 million and net property income (NPI) grew by 34.3% to S$69.1 million.
CapitaLand Commercial Trust Management says the increases were due to CapitaGreen’s better performance and higher contribution to CCT’s gross revenue and net property income.
As at June 30, the trust’s total deposited property value stood at $9 billion, a $194.2 million increase from $8.8 billion in Dec 31.
This was due to higher capital values registered by CCT’s portfolio of properties and divestment gain from the sale of 50% in One George Street.
As a result, CCT’s net asset value per unit also rose over the quarter from $1.72 to $1.77 as at June 30, after accounting for the impending payout of the 1H 2017 distributable income and units in issue.
Lynette Leong, CEO of the CCTM, says, “The Trust’s portfolio committed occupancy rate of 97.6% as at end June 2017 maintained its lead over the market occupancy rate of 94.1% despite oversupply conditions in the office market.”
“During the quarter, we announced the sales of One George Street and Wilkie Edge and are pleased to have achieved sale prices of 16.7% and 39.3% above the respective 31 December 2016 book values and at exit yields of 3.2% and 3.4% per annum respectively. Net proceeds from these two asset sales are expected to total approximately S$833 million, greatly enhancing CCT’s financial flexibility,” she adds.
Upon the completion of the sale of Wilkie Edge, which is expected in September, the divestment proceeds will be used to fund the trust’s share of capital in the redevelopment of Golden Shoe Car Park, reducing CCT’s borrowings.
Units of CCT closed 1 cent higher at $1.69 on Tuesday.
