CapitaLand Commercial Trust's revenue up 9.8% to $194.43m in H1 2018

The value of its total investment properties rose 6.7% to $10.6b after acquiring Gallileo.

CapitaLand Commercial Trust (CCT) recorded a revenue growth of 9.8% YoY to $194.43m in H1 2018 from $177.02m in H1 2016, an announcement revealed. Its net property income (NPI) rose 11.5% YoY to $154.95m in H1 2018 from $138.96m in H1 2017.

Meanwhile, its gross revenue for Q2 2018 grew 12% YoY to $98.02m from $87.5m in Q2 2017 whilst the NPI increased 12.5% YoY to $77.74m in Q2 2018 from $69.1m.

In addition, CCT’s distributable income for H1 2018 grew 10.8% to $156m, translating to a distribution per unit (DPU) of $0.428. Based on the annualised H1 2018 DPU and CCT’s closing price per unit of $1.76 on 18 July 2018, CCT’s distribution yield is 4.9%.

“The higher distributable income was mainly due to contributions from Asia Square Tower 2 and CapitaGreen, which offset the divestments of One George Street, Wilkie Edge and Golden Shoe Car Park,” CCT said.

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As of 30 June 2018, CCT’s total investment properties value rose 6.7% to $10.6b which is mainly due to the acquisition of Gallileo and the rising value of its Singapore portfolio.The firm issued 130 million new units for the equity placement to partially aid in the acquisition of Gallileo in Q2 2018.

Meanwhile, CCT’s committed occupancy ballooned to 97.8% in H1 2018 which is well above the market occupancy average of 94.1%. The results were mainly credited after the addition of Gallileo.

In terms of leasing, CCT signed approximately 335,000 sq ft where 14% were new leases. New demand for space came from companies in the business consultancy, IT, media and telecommunications, financial services, and the retail products and services sectors.

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“The rise in market rents will narrow the gap between committed and expiring rents for its leases due for renewal in 2018 and 2019,” CCT commented.