CapitaCommercial Trust (CCT) on Friday reported that its first quarter distribution per unit (DPU) stood at 1.93 cents.
CCT said the DPU, which has been adjusted for rights issue, is 19.1 per cent higher than the 1.62 cents achieved a year ago.
Distributable income for the three months ended March 31 rose 19.7 per cent to S$54.3 million.
CCT said higher rental contribution from the trust’s properties and improved property margins contributed in part to the strong distributable income growth.
Lower interest expense as a result of reduced borrowings in the first quarter of this year compared with the same period last year, also contributed.
Going forward, CEO Lynette Leong said there are clear and encouraging signs that office demand has recovered and office market rentals have reached a trough.
However, she cautioned that the largely uncommitted new office supply of 4.5 million square feet projected for 2011 and 2012 still leaves a question of when office market rentals will recover and to what degree.
CCT said there will be no distribution payment to unitholders this quarter as the trust distributes semi-annually.
Source : Channel NewsAsia – 16 Apr 2010