CapitaLand Commercial Trust NPI down 73.1m in Q3

DPU fell 9.1% to 2 cents.

CapitaLand Commercial Trust’s (CCT) net property income (NPI) fell to $73.1m in Q3, 9.9% lower than the same quarter in 2019, a recent SGX filing revealed. Gross revenue for the quarter also dropped by 8.7% YoY to $94.7m.

Distributable income for the quarter totalled $77.5m, 8.6% lower than the same quarter in 2019 whilst distribution per unit (DPU) slipped 9.1% YoY to $0.02.

The lower NPI and revenue were due to the full-quarter contribution from Main Airport Center and higher contributions from Gallileo and CapitaGreen being offset by reduced revenue from CCT’s other Singapore operating properties. CCT’s portfolio faced expenses due to asset enhancement works, lower occupancies, lower non-rental revenue, and rental waivers granted to tenants in view of COVID-19.

Year-to-date (YTD), distributable income has shrunk 17.3% YoY whilst the DPU of $0.0534 is 19.1% YoY lower than in 9M 2019. This translates to a DPU yield of 4.4% based on annualized YTD 2020 DPU and CCT’s last closing price of $1.65 on 16 October.

CCT has suspended trading since 19 October and the trust scheme of arrangement became effective in accordance with its terms on 20 October.

The cleanup distribution for the period from 1 July to 20 October 2020, including the reported distribution of $0.02 cents for Q3, is expected to be paid by 30 November. Further details on the cleanup distribution will be announced by the manager on 30 October, the bourse filing stated.

As of 30 September, CCT’s portfolio committed occupancy was 95.2%. The trust signed new leases and renewals for approximately 290,000 square feet (sf) of net lettable area in Q3, with 24% of the space being new leases. The new leases were committed by tenants predominantly from the real estate and property services; financial services; and business consultancy, IT, media, and telecommunications sectors.

Rent waivers for Q3 amounted to about $0.9m, and bout 6.2% of CCT’s tenants are on rent deferment schemes.

Separately, with the further easing of COVID-19 restrictions, the trust observed more people returning to their workplaces. By the week ended 16 October, some 35% of CCT’s office community have returned, it said.