CapitaLand Commercial Trust's CapitaGreen. (Photo: CapitaLand Commercial Trust)

CapitaLand Commercial Trust (CCT) has reported a distribution per unit (DPU) of 2.16 Singapore cents for its 2Q 2018, a fall of 4% from the 2.25 cents that was achieved in the corresponding period of the previous financial year.

This decline is attributed to an enlarged unit base after the REIT issued 130 million new units to partially finance the acquisition of Gallileo, a Class A office property in Frankfurt, Germany, earlier in the year.

CCT’s gross revenue and net property income (NPI) rose 12.0% and 12.5% year-on-year respectively, while its distributable income of SGD79.4 million (USD58 million) represents an increase of 14.3% over the same period in the previous financial year.

The REIT has attributed these increases mainly to contributions from Asia Square Tower 2 and CapitaGreen, which offset the divestments of its interest in One George Street, Wilkie Edge, and Golden Shoe Car Park.

CCT’s total portfolio committed occupancy edged was at 97.8% as at 30 June 2018 after the addition of Gallileo, and the property’s anchor tenant, Commerzbank AG, is now the REIT’s second largest tenant.

Meanwhile, its Singapore portfolio’s committed occupancy was at 97.6%, above the market occupancy average of 94.1%.

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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.