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SG CCT's Q3 distributable income up 1.6%

Property Here - Monday, October 21, 2013

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CapitaCommercial Trust's (CCT) distributable income increased 1.6 percent to S$58.8 million in the third quarter this year from S$57.9 million in Q3 2012. This is primarily due to lower interest expenses in the quarter and distribution of tax-exempt 1H2013 distributable income from Quill Capita Trust.

At the same time, distribution per unit (DPU) stood at 2.01 cents, which works out to a 5.7 percent distribution yield based on the closing price of S$1.42 on 17 October. 

Meanwhile, gross revenue fell to S$94.9 million in Q3 from S$95.5 million over the same period last year, while net property income declined 3.5 percent to S$72.6 million from S$75.2 million previously. Nonetheless, CCT's portfolio operating margin remained within the range of 75 to 80 percent.

Kee Teck Koon, Chairman of the trust’s manager, said: “CCT’s portfolio has performed well in the third quarter despite the cessation of One George Street’s yield protection income in July 2013 and the uncertain economic environment.”

He added: “Our intensified marketing and leasing efforts have translated into higher committed portfolio occupancy rate of 97.6 percent as at 30 September 2013. Higher rents have also been secured for most new leases and renewals for the year to date. CCT will enjoy the full impact of this positive rent reversion flow-through in 2014. We will continue with our current strategies to harness organic growth from our property portfolio, and create growth from our 40.0 percent interest in the CapitaGreen development for the benefit of CCT unitholders.” 

CapitaGreen is a Grade A office development that is set to be completed in Q4 2014.