CCT distributable income up 11% to $59.9 in 3Q12

Higher revenues, interest income drove uptick.

Gross revenue of S$95.5 million for 3Q 2012 was 7.0% higher than that for 3Q 2011. The increase was mainly from revenue contribution by Twenty Anson, higher revenue from HSBC Building, Capital Tower, Golden Shoe Car Park, Bugis Village and higher yield protection income for One George Street.

However, the increase was offset by lower revenue from Six Battery Road, Raffles City (CCT’s 60% interest), Wilkie Edge and the marginal loss of revenue due to the development of CapitaGreen.

Property tax in 3Q 2012 of S$5.6 million was S$0.7 million or 11.0% lower compared with 3Q 2011 due to vacancy refund and successful appeal of annual value assessment for prior years. Other property operating expenses of S$12.0 million for 3Q 2012 were S$0.8 million or 7.4% higher compared with 3Q 2011. The increase in the other operating expenses was due to higher utilities, marketing expenses and maintenance costs.

Interest income of S$0.7 million for 3Q 2012 was higher than that for 3Q 2011 by S$0.2 million or 40.6% due to the interest income from shareholder’s loan to MSO Trust of S$0.5 million (CCT’s 40.0% interest), offset by decrease in interest income of S$0.3 million earned from cash balance of CCT Group.

Amortisation expense relates to the amortisation of the yield stabilization sum from FOPL for 3Q 2012 (nil for 3Q 2011). This expense does not affect distributable income. Trust expenses was S$2.0 million for 3Q 2012 was higher as compared to S$0.2 million (credit) for 3Q 2011. The higher expenses for 3Q 2012 was due mainly to higher professional fees incurred. The S$0.2 million (credit) in 3Q 2011 was due to a reversal of S$1.0 million arising from a cost recovery by MSO Trust.

Finance costs of S$18.3 million for 3Q 2012 were 7.8% lower compared with 3Q 2011, due mainly to lower interest cost incurred as well as lower amortization and transaction costs. Premium on repurchase of convertible bonds refers to the premium on repurchase of face value of S$126.0 million in 3Q 2012 of the CB due 2013. The premium does not affect the distributable income.