CCT’s 2Q 2018 distributable income grew 14.3% year-on-year
Portfolio reconstitution through acquisition of Gallileo and divestment of Twenty Anson
Singapore, 19 July 2018 – CapitaLand Commercial Trust Management Limited, the Manager of CapitaLand Commercial Trust (CCT or Trust), is pleased to report distributable income of S$79.4 million in 2Q 2018, up 14.3% year-on-year (y-
In 1H 2018, CCT’s distributable income grew 10.8% to S$156.0 million, translating to a DPU of 4.28 cents. Based on the annualised 1H 2018 DPU and CCT’s closing price per unit of S$1.76 on 18 July 2018, CCT’s distribution yield is 4.9%.
An advanced DPU of 3.49 cents for the period from 1 January to 27 May 2018 was paid on 18 July 2018 and the balance 1H 2018 DPU of 0.79 cents for the period from 28 May to 30 June 2018 is expected to be paid on Wednesday, 29 August 2018. Books closure date will be on Friday, 27 July 2018.
As
The Trust’s unaudited Consolidated Financial Statements for 2Q 2018 results are available on its website (www.cct.com.sg) and on SGXNet (www.sgx.com).
SUMMARY OF CCT GROUP RESULTS
|
2Q 2018 |
2Q 2017 |
Change (%) |
1H 2018 |
1H 2017 |
Change (%) |
Gross Revenue (S$’000) |
98,015 |
87,495 |
12.0 |
194,433 |
177,020 |
9.8 |
Net Property Income (S$’000) |
77,737 |
69,103 |
12.5 |
154,946 |
138,958 |
11.5 |
Distributable Income (S$’000) |
79,383 |
69,467 |
14.3 |
155,989 |
140,759 |
10.8 |
DPU (cents) |
2.16 |
2.25 |
(4.0) |
4.28 |
4.56 |
(6.1) |
DPU restated for rights issue (cents) |
2.16 |
2.193 |
(1.6) |
4.28 |
4.453 |
(3.7) |
Adjusted DPU (cents) |
2.16 |
1.894 |
14.3 |
4.28 |
3.864 |
10.9 |
Mr Kevin Chee, Chief Executive Officer of the Manager, said: “For the quarter under review, we pushed ahead with our value creation strategy to generate sustainable growth for CCT. Our multi-pronged approach encompasses proactive management of existing operational assets to achieve organic growth; portfolio reconstitution through redevelopment and divestment to enhance and unlock value from our properties; disciplined acquisition of quality assets that offer strategic fit with the portfolio; and proactive capital management to diversify funding sources and manage cost of borrowings in support of growth initiatives.”
Mr Chee added: “In line with the aforementioned strategy, we undertook two key moves in 2Q 2018 to generate value. On 18 June 2018, CCT completed the acquisition of
Aggregate leverage as at 30 June 2018 was 37.9%, unchanged from last quarter and well below the regulatory limit of 45.0%. CCT obtained €340.6 million (S$532.0 million) in unsecured bank borrowings and raised S$217.9 million through an equity placement for the acquisition of
CCT’s total portfolio committed occupancy edged up to 97.8% as at 30 June 2018 after the addition of
In 2Q 2018, CCT signed approximately 335,000 square feet of leases, of which 14% were new leases. New demand for space came from companies in the Business Consultancy, IT, Media and Telecommunications; Financial Services; and Retail Products and Services sectors. New and renewed tenants signed during the quarter include JPMorgan Chase Bank N.A., Muzinich & Co. (Singapore) Pte. Limited, SilkRoad Property Partners Pte Ltd and Thenamaris Singapore Pte.
Most of the leases due in 2018 have been renewed or committed, with only 2%
Outlook
Based on data from CBRE Pte. Ltd., Singapore’s average monthly office rent was S$10.10 per square foot in 2Q 2018, an increase of 4.1% quarter-on-quarter.
Frankfurt’s prime office rent market has been resilient through property cycles. With the relatively low new supply completing in 2018 and 2019, along with good pre-letting levels, the prime office rents in the city should be well-supported and expected to grow.
1DPU of 1.37 cents from 1 April 2018 to 27 May 2018 was computed on 3,612.7 million units; and DPU of 0.79 cents from 28 May 2018 to 30 June 2018 was computed on 3,742.7 million units, following the issuance of 130.0 million new CCT units for the equity placement in 2Q 2018.
2Excludes Bugis Village and Twenty Anson but includes CCT’s share of interest
3DPU for 2Q 2017 and 1H 2017 were restated for the rights issue, whereby 513.5 million units were issued on 26 October 2017.
4Adjusted DPU for 2Q 2017 of 1.89 cents was computed based on 3,612.7 million CCT units from 1 April 2018 to 27 May 2018 (end date inclusive) and 3,742.7 million Units from 28 May 2018 to 30 June 2018. Adjusted DPU for 1H 2017 of 3.86 cents was computed based on 3,612.7 million Units from 1 January 2018 to 27 May 2018 (end date inclusive) and 3,742.7 million Units from 28 May 2018 to 30 June 2018.