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COMMERCIAL PROPERTY | Staff Reporter, Singapore
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CapitaLand Commercial Trust NPI up 10.5% to $77.2m in Q1

It received higher income from Asia Square Tower 2, Capital Tower, and 6 Battery Road.

CapitaLand Commercial Trust's (CCT) net property income (NPI) jumped by 10.5% YoY from $69.86m to $77.2m in the first quarter of 2018. According to its financial statement, it received higher contributions from Asia Square Tower (AST) 2 which offset the loss in gross revenue due to the divestment of One George Street, Golden Shoe Car Park, and Wilkie Edge.

Distributable income grew 7.5% YoY from $71.29m to $76.6m due to contribution from AST2 as well as higher NPI from Capital Tower and 6 Battery Road. Gross revenue jumped 7.7% to $96.4m.

However, distribution per unit (DPU) fell slipped 11.7% YOY to 2.12 cents.

CCT CEO Kevin Chee noted that the portfolio had a committed occupancy rate of 97.3%. "With a focus on achieving a balance between higher rentals and lower vacancy, we will also leverage the momentum of rising office market rents to manage our lease expiries in the upcoming years... To continue delivering sustainable distribution growth, CCT will also look at core assets in select global gateway cities across developed markets, in addition to exploring opportunities in Singapore,” he added.

CCT noted that the State will take back Bugis Village on 1 April 2019. When Bugis Village is returned, CCT will receive compensation based on an amount of $6.6m plus accrued interest compounded from 1989. Bugis Village accounted for about 2.2% of CCT’s NPI.

Within the quarter, CCT was able to secure J.P. Morgan as tenant of its upcoming development CapitaSpring. "Scheduled for completion in 1H 2021, we aim to replicate the successful value creation achieved with CapitaGreen," Chee added.

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