SINGAPORE (Oct 23): The manager of CapitaLand Commercial Trust (CCT) has announced distribution per unit (DPU) of 2.20 cents for the 3Q19 ended September, unchanged from a year ago.
3Q19 distributable income grew 2.6% to $84.8 million, from $82.7 million a year ago. However, DPU came in flat due to an enlarged unit base.
Gross revenue rose 3.3% to $103.8 million in 3Q19, from $100.5 million a year ago.
The increase was largely attributed to higher revenue from Asia Square Tower 2 (AST2), 21 Collyer Quay, and Capital Tower, as well as contributions from Main Airport Center (MAC) in Frankfurt, Germany.
In addition, a one-off compensation sum of $2.1 million from a tenant at AST2 for early surrender of lease also contributed to the increase.
Property expenses jumped 12.7% to $22.7 million during the quarter, mainly due to higher other property operating expenses due to rental charges for Bugis Village under the master lease with the Singapore Land Authority (SLA) with effect from April 1, 2019.
Consequently, the trust reported net property income (NPI) of $81.1 million for 3Q19, just 0.9% higher than NPI of $80.4 million in 3Q18.
As at end-September, cash and cash equivalents stood at $124.0 million.
CCT’s portfolio occupancy remained high at 97.6% as at Sept 30, 2019, with its eight Singapore assets accounting for 92% of its portfolio property value, and the two German properties making up the remaining 8%.
With the completion of the acquisition of a 94.9% interest in MAC and debt drawn down by CCT’s joint ventures, aggregate leverage ratio inched up to 35.5% as at end-September 2019, compared to 34.8% as at June 30, 2019.
CCT’s 3Q19 DPU of 2.20 cents comprised an advanced distribution of 0.62 cents for the period from July 1 to July 28, which was paid out on Aug 29, and 1.58 cents for the period from July 29 to Sept 30, which will be paid out with the 4Q19 DPU in February 2020.
Based on an annualised DPU up to end-September and closing price of $2.05 on Oct 22, CCT’s distribution yield is 4.3%.
As at 11.35am, units in CapitaLand Commercial Trust are trading 1 cent lower at $2.04.
