Singapore-listed office REIT CapitaCommercial Trust (CCT) ( SGX:C61U) has reported a distribution per unit (DPU) of 2.10 Singapore cents for its 3Q 2014, an increase of 2.9% as compared to the 2.04 Singapore cents paid in 3Q 2013.

Gross revenue climbed by 8.4% to SGD66.4 million while net property income (NPI) saw an 8.6% increase to SGD51.9 million.

The REIT has attributed the quarter's results to its high committed portfolio occupancy of 99.4% and a monthly average office rent increment of 4.9% for its properties in the last 12 months.

CCT also revealed that it has secured additional leases at its upcoming property CapitaGreen, bringing the building's aggregate leasing commitment to 40% of its net lettable area.

"We are in advanced stages of negotiation for another 75,000 square feet of space, positioning is well to achieve our 50% target leasing commitment by the end of the year", said Lynette Leong, CEO for the REIT's manager.

The REIT remains optimistic on the quarters ahead, adding that there would be a tight supply for office space in Singapore's  core CBD area through to the first half of 2016.

CCT also highlighted its relatively low gearing ratio of 30.2% as potential flexibility to "execute growth opportunities " but stopped short of indicating if a possible acquisition is in the pipeline.

With 18% of its office leases due for renewal in 2015, CCT expects potential rental upside in the coming quarters.

Units of CCT are currently listed on the Singapore Exchange at SGD1.62.

CCT property Capital Tower reports 100% occupancy for the quarter.
CCT property Capital Tower reports 100% occupancy for the quarter.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.