CapitaCommercial Trust’s net property income up 8.6% in Q3

Thanks to strong office rentals.

CapitaCommercial Trust is reaping the benefits of the supply squeeze in Singapore’s office sector. The group reported an 8.6% increase in its Q3 net property income to $51.9m from $47.8 in the same quarter last year.

Accordingly, distributable income increased 4.8% YoY to $61.6m. According to OCBC, the growth in distributable income in 3Q14 was mainly due to higher contributions from portfolio assets, except for Wilkie Edge, and stronger NPI and distributable income from RCS Trust as well.

In terms of the topline, gross revenues over the quarter also grew 8.4% YoY to S$66.4m due to overall positive rental reversions across CCT’s asset portfolio. 

“As a result of strong office rentals and positive rental reversions for leases committed, we saw a significant QoQ increase in CCT’s average committed office portfolio rentals from S$8.23 to S$8.42/sq ft. Over the quarter, the trust also signed leases for 131k sq ft of space, of which 17% are new leases, and the portfolio WALE (weighted average lease term to expiry) as at end Sep-14 stands at 7.7 years. CCT continues to enjoy a healthy balance sheet, with gearing at 30.2% as at end 3Q14 and an average cost of debt of 2.3%,” noted OCBC.