CapitaCommercial Trust’s (CCT) distributable income rose 7.6 per cent on-year to S$59.9 million in the first quarter, thanks to higher revenue contribution from most of the properties in its portfolio and lower interest expenses.
This translates into an estimated distribution per unit of 2.08 cents, said the manager of the trust, CapitaCommercial Trust Management.
The trust’s gross revenue for the quarter was S$64 million, up 3.2 per cent from S$62 million a year ago. The growth was attributed to higher contribution across most properties, notably from Six Battery Road and Capital Tower, due to better occupancy and positive rent reversions.
Chairman of CCT Management Kee Teck Koon said the “good results” were enabled in part by its asset enhancement initiatives, active leasing efforts and disciplined capital management. Committed occupancy rates at the trust’s properties reached close to 100 per cent as of the end of last month, up from 98.7 per cent at the end of December, he added.
Construction of CapitaGreen, a Grade A office building in which CCT has 40 per cent interest, is on track to be completed by the end of this year. CapitaGreen has secured commitment of about 12 per cent of net lettable area from Cargill, Bordier & Cie (Singapore) and an international gym operator.
Meanwhile, improvement work at Raffles City Tower is 97 per cent completed, while that at Capital Tower is 25 per cent completed.
Source : Today – 18 Apr 2014