CCT’s 1Q 2018 distributable income grew 7.5% year-on-year
Secures anchor tenant for CapitaSpring, the upcoming skyscraper in Raffles Place
Singapore, 24 April 2018 – CapitaLand Commercial Trust Management Limited, the Manager of CapitaLand Commercial Trust (CCT or Trust), is pleased to report a distribution per unit (DPU) of 2.12 cents for 1Q 2018. This is 7.6% higher year-on-year, after adjusting for the enlarged total units base. Based on an
The Trust’s distributable income of S$76.6 million in 1Q 2018 was 7.5% higher than the S$71.3 million in 1Q 2017. Year-on-year, 1Q 2018 gross revenue increased 7.7% to S$96.4 million and net property income (NPI) grew 10.5% to S$77.2 million. The positive results are due to higher income from CapitaGreen, Capital Tower
As at 31 March 2018, the Trust’s total deposited property value including other assets was S$10.7 billion; while the net asset value per unit was S$1.74, after adjusting for 1Q 2018 distributable income.
The Trust’s unaudited Consolidated Financial Statements for 1Q 2018 results are available on its website (www.cct.com.sg) and on SGXNet (www.sgx.com).
SUMMARY OF CCT GROUP RESULTS
|
1Q 2018 |
1Q 2017 |
Change (%) |
Gross Revenue (S$’000) |
96,418 |
89,525 |
7.7 |
Net Property Income (S$’000) |
77,209 |
69,855 |
10.5 |
Distributable Income (S$’000) |
76,6061 |
71,292 |
7.5 |
DPU (cents) |
2.12 |
2.40 |
(11.7) |
No. of units in issue at the end of the period (million) | 3,612 | 2,969 | 21.6 |
Adjusted DPU (cents) |
2.12 |
1.972 |
7.6 |
No. of units in issue as at 31 March 2018 (million) |
3,612 |
3,612 |
- |
The Trust has a healthy balance sheet with an aggregate leverage of 37.9%3, well below the regulatory limit of 45.0%. The Manager has successfully refinanced borrowings due in 2018 and
CCT has also received confirmation from the Singapore authorities that it will take back Bugis Village on 1 April 2019. When Bugis Village is returned, CCT will receive compensation based on an amount of S$6.6 million plus accrued interest compounded from 1989. Bugis Village accounted for about 2.2% of CCT’s 1Q 2018 NPI.
In 1Q 2018, CCT signed approximately 96,000 sq ft of leases, of which 37% were new leases. Leasing was largely driven by relocation and expansion by existing tenants and demand for space came from companies in the Financial Services, Retail Products
Outlook
Based on data from CBRE Pte. Ltd., Singapore’s Core CBD office occupancy rate increased quarter-on-quarter (q-o-q) by 0.3% to 94.1%. Grade A monthly office market rent was S$9.70 per square foot in 1Q 2018, an increase of 3.2% q-o-q. With higher committed occupancies in the newly completed office buildings and limited new supply in the CBD from 2018 to 2020, market rents are expected to continue to grow steadily over the next few years. In relation to CCT, the potential rise in market rents will narrow the gap between committed and expiring rents for its leases due for renewal in 2018.
1In 1Q 2018, CCT retained S$1.6 million of its taxable income available for distribution to Unitholders, to be paid out later in FY 2018. CCT is committed to
2DPU for 1Q 2017 of 1.97 cents was adjusted for the enlarged 3,611.7 million CCT units (1Q 2017: 2,969.0 million CCT units).
3The aggregate leverage of 37.9% takes into account CCT’s proportionate share of its joint venture borrowings and deposited property value.
4Average term to maturity excludes joint ventures’ borrowings.