CAPITACOMMERCIAL Trust, one of Singapore’s biggest office landlords, has posted distributable income of $29.6 million for the third quarter

CAPITACOMMERCIAL Trust, one of Singapore’s biggest office landlords, has posted distributable income of $29.6 million for the third quarter ended Sept 30, 2007, which is 13.5 per cent higher than the trust manager’s forecast based on a circular dated August last year, and a 52.4 per cent improvement from the same period last year.

‘The better financial performance year-on-year is a result of the accretive acquisition of Raffles City last year and the higher rental income from our quality office portfolio,’ CapitaCommercial Trust Management Ltd’s CEO Lynette Leong said in a news release.

CCT owns Raffles City complex jointly with CapitaMall Trust (CMT). The two real estate investment trusts yesterday gave an update on the asset enhancement works and leasing programme of retail space in the property. New tenants committed include the first Singapore stores of Spanish brands Cortefiel and Pedro del Hierro being introduced here by Ossia.

The stores will be on level one of Raffles City Mall, which will also feature flagship stores for Springfield and Kate Spade.

Ms Leong also highlighted that more than 50 per cent of CCT’s office leases (by gross rental income as at Sept 30 this year) expire in 2008 and 2009, positioning the trust for strong positive rental reversion to be realised from its office portfolio.

CCT’s Singapore properties include 6 Battery Road, Capital Tower, Robinson Point, HSBC Building, StarHub Centre and the Golden Shoe and Market Street car parks in addition to the 60 per cent stake in the Raffles City complex.

CCT’s Q3 gross revenue was $59.7 million, up 9.1 per cent from the forecast figure for the period and 60.1 per cent higher than that reported for the same year-ago period. Net property income was $42.5 million, which was 6.7 per cent higher than forecast and a 55.1 per cent year-on-year improvement.

CCT is not making any payout to unitholders for Q3 but its result for the quarter reflects a DPU of 2.14 cents. DPU for the first nine months of this year is 6.37 cents or an annualised figure of 8.52 cents, reflecting a distribution yield of 3.3 per cent based on CCT’s closing price yesterday of $2.57. The counter ended 10 cents higher yesterday.

CCT will be asking unitholders to approve its proposed acquisition of Wilkie Edge along Selegie Road at a coming extraordinary general meeting. The approval, if given, will boost the trust’s asset size to nearly $4.8 billion. The trust is targeting to grow this further to $5-6 billion by 2009.

CCTML says it expects the trust’s full-year 2007 performance to surpass the forecast DPU of 7.60 cents.

Source : Business Times - 24 Oct 2007