CapitaLand’s office REIT sees 3.2% growth in DPU for 2Q 2017

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CapitaLand Commercial Trust has reported a distribution per unit (DPU) of 2.27 Singapore cents for its 2Q 2017, an increase of 3.2% over the 2.20 cents achieved in the corresponding period of 2016.

The Singapore-listed office REIT’s gross revenue for the period grew by 29.5% year-on-year to SGD87.5 million (USD64 million) while net property income (NPI) grew by 34.3% to SGD69.1 million.

Correspondingly the quarter’s distributable income of SGD69.5 million represents a growth of 6.7% from the SGD65.1 million reported in 2Q 2016.

CapitaLand Commercial Trust has attributed the quarter’s results to CapitaGreen’s better performance, and better numbers overall in the REIT’s gross revenue and NPI.

“The [REIT’s] portfolio committed occupancy rate of 97.6% as at end June 2017 maintained its lead over the market occupancy rate of 94.1% despite oversupply conditions in the office market”, said Lynette Leong, CEO of CapitaLand Commercial Trust’s manager in a statement on the results.

Read: CapitaLand office REIT enters joint venture to redevelop Golden Shoe car park

The REIT’s weighted average lease expiry (WALE) for the quarter was at 6.5 years by net lettable area while gearing was at 35.2% with average cost of debt of 2.6% as at 30 June.

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Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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