CapitaLand Commercial Trust's NPI down 4.5% to $151.1m in H1 2020

Its Singapore properties were affected by upgrading works and lower occupancies.

CapitaLand Commercial Trust's (CCT) net property income (NPI) declined 4.5% YoY to $151.1m in the first half of 2020, from $158.19m in H1 2019, according to a news release. Gross revenue dipped 2.2% to $196.4m from $200.75m over the same period.

In Q2, NPI fell 9.7% YoY to $70.77m, whilst gross revenue slipped 8.1% to $92.8m. During the quarter, the company saw lower income from its properties in Singapore that were affected by upgrading works, lower occupancies and rental waivers to tenants.

However new contributions from Main Airport Center acquired in September 2019, as well as higher income from Gallileo partially mitigated these impacts.

Distributable income fell 20.4% to $65.6 during the quarter. Distribution per unit (DPU) likewise shrank 23.2% YoY to $0.0169, though this is 2.4% higher than in Q1.

“Retaining and supporting our tenants through the COVID-19 challenges remains a priority for CCT. To ensure that our portfolio maintains a sustainable path to future growth, we are focused on completing the asset enhancements of Six Battery Road and 21 Collyer Quay as well as the development of CapitaSpring in 2021,” the CEO of CCT’s manager Kevin Chee said.