CapitaCommercial's distributable income up 3.4%
Lower occupancy rate and signing office rents however drags on year-on-year gross revenue.
CapitaCommercial Trust Management, announced a distribution per unit of 1.90 cents for the financial quarter ended 31 March 2012. This is 3.3% above DPU of 1.84 cents reported in 1Q 2011. Based on the closing price of S$1.245 per unit on 19 April 2012, CCT’s distribution yield is 6.1%.
1Q 2012 distributable income of S$53.9 million is 3.4% higher than the distributable income of S$52.1 million for the same period last year. Notwithstanding lower year-on-year gross revenue in 1Q 2012 due to lower occupancy rate and signing office rents being lower than expired rents, the Trust’s net property income was maintained at S$69.9 million as a result of lower property expenses. An increase in interest income and a decline in trust and interest expenses resulted in higher distributable income in 1Q 2012 for the Trust.
Mr. Richard Hale, Chairman of the Manager, said, “We are pleased with the Trust’s performance in 1Q 2012 even in the midst of economic uncertainty. Having completed all refinancing for 2012, the Trust’s balance sheet is further strengthened. Last month, we also completed the acquisition of Twenty Anson, a new and well-located prime office building. The acquisition was funded with part of the cash proceeds recycled from two older office buildings divested in 2010 and some debt, and validates the successful execution of our portfolio reconstitution strategy for the Trust. Twenty Anson will contribute income for a full quarter from 2Q 2012. Another growth opportunity that will augment the Trust’s quality and income stream is its 40% interest in CapitaGreen, a Grade A office tower being developed on the former Market Street Car Park site. The construction of CapitaGreen broke ground on 6 February and is on track to complete by fourth quarter of 2014. We are pleased to have enhanced the Trust by these major efforts and will continue to seek ways to further increase its value.”