CapitaLand Commercial Trust (CCT) (SGX:C61U) has recorded a distribution per unit (DPU) of 2.14 Singapore cents for its 3Q 2015, representing a year-on-year increase of 2.4% over the 2.09 Singapore cents in FY 2014.
Gross revenue and net property income (NPI) for the quarter saw growths of 4.8% and 3.8% to SGD68.3 million and SGD52.6 million respectively.
“CCT’s portfolio occupancy of 96.4% as at 30 September 2015 is above CBD core market occupancy of 95.8%”, said Lynette Leong, CEO of the REIT’s manager. “In anticipation of the new office supply expected in the second half of 2016, we have proactively implemented a well-spread portfolio lease expiry profile with major leases expiring in 2019 and beyond”, she added.
On its outlook for the quarters ahead, the REIT highlighted the declining occupancy rate of offices in the Singapore CBD that slipped by 0.4% to 95.8% in 3Q 2015 compared to 2Q 2015 . Average monthly Grade A office market rent also eased from SGD11.30 per square foot in 2Q 2015 to SGD10.90 per square foot in the 3Q 2015, it said.
“With the impending completion of new supply in 2016, downward pressure is expected on office market rents as landlords focus on retaining and attracting tenants”, said the REIT in a statement on the results.
Units of CapitaLand Commercial Trust last changed hands on the Singapore Exchange at SGD1.43.