CapitaCommercial Trust (CCT) will distribute 5.19 Singapore cents per unit for the first half of this year.
This is about 23% higher than the same period last year. It also exceeds the trust manager’s forecast by 4.2 per cent.
The annualised distribution per unit (DPU) of 10.44 cents would provide a distribution yield of 5.5 per cent based on CCT’s closing price on Tuesday.
CCT, Singapore’s largest commercial trust by asset size, recorded a distributable income of S$71.9 million in the first half. This was largely driven by strong organic growth, with average office rental rates jumping 193 per cent, while retail space rentals grew 52 per cent in the first half, compared to the last contracted rental rate.
The current tight supply in Singapore’s office market helped boost revenues for CapitaCommercial Trust, and it expects this to continue beyond 2010.
“One of the key reasons that’s driving growth is the fact that our underlying leases had contract rents that were significantly below market. And as a result of the renewals, reviewing them to market, it has caused a very substantial growth this half year,” said Lynette Leong, CEO of CapitaCommercial Trust Management.
Going forward, the trust said it is confident of exceeding its forecast distribution of 10.61 cents per unit this year. It is citing continued strong demand for Grade A office space in Singapore.
The trust has S$7 billion worth of assets in its portfolio. - CNA /ls
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