The manager of CapitaLand Commercial Trust (SGX:C61U) (CCT) announced on Wednesday that its final distributable income for the quarter ended 30 September (3Q2020) is S$77.5 million, 8.6% lower than 3Q 2019. Similarly, distribution per unit (DPU) for 3Q 2020 dropped 9.1% year-on-year.
Year-to-date distributable income was S$206.9 million and DPU was 5.34 cents, lower by 17.3% and 19.1% year-on-year respectively. This translates to a DPU yield of 4.4% based on an annualised YTD 2020 DPU and CCT’s last closing price of S$1.65 on 16 October 2020.
Gross revenue for 3Q 2020 decreased by 8.7% to S$94.7 million, while net property income fell 9.9% to S$73.1 million year-on-year. The contributions from CCT’s properties in Germany (Main Airport Center and Gallileo) were unable to offset the reduced gross revenue from Singapore operating properties (except for CapitGreen) due to “asset enhancement works, lower occupancies, lower non-rental revenue and rental waivers granted to tenants in view of Covid-19”.
“For year-to-date 2020, CCT delivered a credible performance despite challenges brought on by the Covid-19 pandemic and the softening office market environment”MR Kevin Chee, Chief Executive Officer of CCT’s Manager
“Leases due in 2020 have largely been committed and leases due with major tenants due in 2021 have also been renewed. We are confident that this disciplined approach to proactive leasing, asset management and portfolio reconstitution will continue under CapitaLand Integrated Commercial Trust.”
Distributable income for 3Q2020 decline 8.6% year-on-year, on the back of lower net property income and lower distribution from RCS Trust which manages Raffles City Singapore. This decline was partially mitigated by higher distribution from OGS LLP, higher tax-exempt income distribution and lower interest expense.
Trading in CCT has been suspended since 19 October as it will be merged with CapitaLand Mall Trust (CMT) to form CapitaLand Integrated Commercial Trust (CICT). Final distribution for CCT is expected to be paid out by 30 November.
CCT’s portfolio committed occupancy was 95.2% as at 30 September and has supported tenants with S$0.9 million in rental waivers in 3Q 2020, with 6.2% of tenants on rent deferment schemes. 35% of CCT’s office community have returned to the workplace as of week ended 16 October. CCT’s aggregated leverage as at end 3Q 2020 stands at a stable 36.9% with its average debt cost held steady at 2.2% per annum. It’s credit rating was upgraded by S&P Global Ratings to “A-“ with stable outlook from “BBB+” on 30 September.
CapitaLand Commercial Trust (CCT) is Singapore’s first and largest listed commercial real estate
investment trust (REIT) with a market capitalisation of approximately S$6.4 billion as at 16 October 2020, its last day of trading.
CCT’s deposited property is approximately S$11.6 billion as at 30 September 2020 comprising a portfolio of eight prime commercial properties in Singapore and two properties in Frankfurt, Germany. The properties in Singapore are Capital Tower, CapitaGreen, Asia Square Tower 2, Six Battery Road, Raffles City (60.0% interest through RCS Trust), One George Street (50.0% interest through OGS LLP), 21 Collyer Quay and CapitaSpring (45.0% interest through Glory Office Trust and Glory SR Trust), an upcoming 51-storey integrated development in Raffles Place. The properties in Germany are Gallileo (94.9% interest), in the Banking District of Frankfurt, and Main Airport Center (94.9% interest) near Frankfurt Airport.