CapitaLand Commercial Trust posts 6.7% increase in 4Q DPU to 2.22 cents

SINGAPORE (Jan 24): The manager of CapitaLand Commercial Trust (CCT) announced 4Q18 DPU increased 6.7% to 2.22 cents from 2.08 cents in 4Q17.

This brings FY18 DPU to 8.70 cents, just 0.5% more than 8.66 cents in FY17.

Distributable income for the quarter was 10.7% higher at $83.1 million, from $75.0 million in the previous year, due to higher net property income as well as the distribution of S$3.9 million tax-exempt income from dividends paid by its subsidiaries that own AST2 and Gallileo.

Gross revenue came in at $99.0 million, a 14.8% increase from $86.3 million last year, mainly due to contributions from Asia Square Tower 2 (AST2) and Gallileo, acquired on Nov 1, 2017 and June 18, 2018 respectively. But this was offset by the divestments of One George Street, Golden Shoe Car Park and Wilkie Edge in 2017, and Twenty Anson on Aug 29, 2018.

Property operating expenses was 7.7% higher y-o-y at $19.8 million, bringing net property income for 4Q18 to $79.3 million, 16.6% higher than $68.0 million a year ago.

Share of profit (net of tax) of joint venture jumped 67.3% to $26.0 million from $15.6 million in the previous year.

During the quarter, the trust registered a net increase in fair value of investment property of $19.0 million, compared to a net decrease of $24.4 million in the same period last year.

Soo Kok Leng, chairman of the manager, says, “During the year, we diversified CCT’s growth engines geographically with a strategic acquisition in Frankfurt, Germany. We will continue to explore investment opportunities in select gateway cities of developed markets, while strengthening CCT’s market leadership in its home base.”

Kevin Chee, CEO of the manager, says, “Looking ahead, we will strive to maintain robust portfolio occupancy and retain tenants while committing rents above market levels. In addition, we will pursue investment and value creation opportunities in Singapore and Germany, where 95% and 5% of CCT’s assets are currently located respectively. On the longer horizon, CCT’s growth pipeline includes the call option for the remaining 55% of CapitaSpring’s commercial component not owned by CCT. The call option is exercisable within five years after the development’s temporary occupation permit is obtained, which is expected in 1H21.”

Units in CCT last traded at $1.83 on Wednesday.