CapitaLand Commercial Trust Q4 distributable income rises

Employment growth slows in singapore
A man passes a Capitaland logo outside an office building in the central business district in Singapore January 22, 2016 Reuters

CapitaLand Commercial Trust (CCT) on Thursday reported a 6 percent rise in fourth-quarter distributable income.

Distributable income rose to S$75 million for the three months ended December 31 from S$70.8 million a year earlier, it said in a statement.

CCT, a unit of property developer CapitaLand, said distribution per unit stood at 2.08 Singapore cents, down from 2.39 Singapore cents from a year ago.

Net property income fell 4 percent to S$68 million, due to divestments of its stake in One George Street, Golden Shoe Car Park and Wilkie Edge, the company said.

The impact was mitigated by higher gross revenue and net property income from CapitaGreen and contribution from newly acquired Asia Square Tower 2.

Gross revenue fell 3.8 percent to S$86.3 million.

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CCT said it expects market rents to rise in light of limited new office supply in the next few years and reported high pre-commitment levels of recently completed and upcoming office buildings in the CBD.

It expects lower net property income in fiscal 2018 at
some CCT properties given the flow through from negative rent reversions of leases committed in 2017 into 2018 and that rents of leases expiring in 2018 are higher than current market rent.

CCT said it will leverage on rising market rents to close the gap between signing and committed rents.

Shares were up 0.5 percent at S$1.92 on the Singapore Exchange.

This article was first published on January 25, 2018