CCT’s Q3 distributable income falls 7.8 %

CapitaCommercial Trust (CCT), an office landlord partly owned by CapitaLand, reported yesterday a distributable income of S$51.9 million for the third quarter, down 7.8 per cent from the same period last year.

This is due to lower rental income following the sale of StarHub Centre and Market Street Car Park for redevelopment as well as negative rent reversions from expiring office leases this year, CCT said.

Distribution per unit for the third quarter is 1.83 Singapore cents, 8 per cent lower than the 1.99 Singapore cents last year. Distribution yield is 7-per-cent based on the closing price of S$1.07 per unit on Wednesday.

The occupancy rate at its properties was 97.2 per cent as of the end of last month. Net property income for the quarter was S$69.2 million, down 9.2 per cent from a year ago.

Mr Richard Hale, chairman of CapitaCommercial Trust Management, the manager of CCT, said that, while it is mindful of the current weak global macroeconomic climate, CCT is in a better position today compared with during the 2008 global financial crisis. He added that the current macroeconomic uncertainty could offer investment opportunities.

CCT closed up 2.8 per cent at S$1.10 yesterday.

Source : Today – 14 Oct 2011

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