Higher contributions from Gallileo and higher occupancy at Asia Square Tower 2 boosted performance.
CapitaLand Commercial Trust’s (CCT) net property income (NPI) jumped 3.4% to $79.80m in Q1 2019 from $77.21m in Q1 2018, its financial statement revealed. Distributable income rose 8% to $82.72m.
According to its performance review, the improved performance was largely due to contributions from Gallileo – acquired in June 2018 – and higher occupancy at Asia Square Tower 2, which more than offset the divestment of Twenty Anson.
CCT’s portfolio occupancy rate was 99.1% as at 31 March 2019. “This resilient performance was further underpinned by CCT’s proactive asset and capital management,” the company said.
Additionally, CCT signed over 225,000 sqft of new leases and renewals, of which 18% were new leases. “New demand for office space was driven by tenants from diverse trade sectors.”
However, CCT warned that the negative rent reversions for leases signed in prior quarters are expected to flow through as seen in the year-on-year gross revenue for CapitaGreen and Six Battery Road in Q1 2019. This may impact overall portfolio revenue growth in 2019.
CCT returned leasehold interest of Bugis Village to the State on 1 April 2019 and received the agreed compensation sum of $40.7m. Concurrently, CCT signed a one-year master lease with the State for Bugis Village from 1 April 2019 to 31 March 2020, with a projected net income of $1.0m. As at 1 April 2019, about 84% of tenants at Bugis Village have committed to extend their leases.
Distribution per unit (DPU) rose 3.8% to 2.20 cents from 2.12 cents a year ago.
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