CapitaLand Commercial Trust's net property income shoots up 8.3% to $52.7m

On the back of stronger contributions from CapitaGreen.

With CapitaGreen's 100% contribution to the overall performance of Capitaland Commercial Trust (CCT), Singapore's first commercial REIT reported a distribution per unit (DPU) growth of 7.5%.

According to the CCT’s announcement, this came as its net property income soared 8.3% to $57 million, easing up from $52.7 million recorded during the same period last year.

CCT's headline shoots up at around the same space, growing 8.9% to $74.4 million.

"This is attributable to CapitaGreen’s 100.0% contribution to CCT’s gross revenue and NPI since the completion on 31 August 2016 of CCT’s acquisition of 60.0% stake in MSO Trust which owns CapitaGreen, a premium Grade A office building," the group said.

CCT Management CEO Lynette Leong said the completion of CapitaGreen’s acquisition has given CCT’s DPU a significant boost this quarter.

"We are currently seeking government approvals for the redevelopment of Golden Shoe Car Park into a one million square foot commercial development and hope to repeat the same value-creation success of CapitaGreen which was redeveloped from the former Market Street Car Park,"

More so, she said the trust's portfolio has remained resilient with 97.4% occupancy rate, which is higher than market occupancy rate of 95.9% in 3Q16.

"Through proactive leasing efforts, negotiations for almost all leases expiring this year have been concluded. Only 8% of office portfolio leases by committed net lettable area will expire in 2017, and remain to be renewed. We will continue with our proactive efforts to attract and retain tenants to mitigate leasing risk,” Leong said.