CCT saw a 7.2% DPU increase in Q1

CapitaCommercial Trust (CCT) saw its distribution per unit (DPU) increase 7.2 percent from 1.94 cents in Q1 2013 to 2.08 cents in Q1 2014.

The trust's distribution yield stood at 5.2 percent, based on its closing price per unit of S$1.635 on 17 April 2014.

At the same time, CCT's gross revenue rose by 3.2 percent to S$64 million from S$62 million in Q1 2013 while its net property income climbed 1.5 percent to S$50.7 million. Its distributable income increased 7.6 percent year-on-year to S$59.9 million in Q1 2014 from S$55.7 million previously.

"This was due to higher net property income from the Trust's wholly-owned properties as well as income from its 60.0 percent interest in Raffles City Singapore, and lower interest expense," CapitaCommercial Trust Management Limited, CCT's Manager, stated in a release.

Kee Teck Koon, Chairman of the Manager, revealed that the trust has "no outstanding debt due in 2014, and has in place standby facilities to refinance most of its borrowings due in 2015. The Trust's strong balance sheet provides it with debt headroom of S$1.2 billion for investment opportunities, assuming gearing of up to 40.0 percent."

Additionally, Lynette Leong, Chief Executive Officer of the Manager noted that more than two-thirds of the leases expiring this year have been renewed, "underscoring our tenants' affinity for CCT's properties."

"The brisk leasing activities improved CCT's committed portfolio occupancy rate over the first quarter to 99.4 percent", iterated Leong, "this is significantly higher than the average occupancy rate of 95.7 percent at the Core CBD as at 31 March 2014."



Christopher Chitty, Senior Content Producer at PropertyGuru, edited this story. To contact him about this and other stories, email christopher@propertyguru.com.sg



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