CCT distributable income up 1.6% in 3Q13

Thanks primarily to lower interest expenses.

CapitaCommercial Trust (CCT) reported 3Q13 distributable income of S$58.8m – 1.6% higher YoY, which according to OCBC cumulates to a 9M13 distributable income of S$174.0m, up 2.2% YoY and is within the research firm's expectations.

With the 3Q13 results, the CCT's 9-month year-to-date distributable income make up 75.9% of OCBC's FY13 forecast. 3Q13 DPU is 2.04 S-cents which translates to a 5.7% distribution yield based on the last closing price of S$1.42.

"The growth in 3Q13 distributable income was mainly due to lower interest expenses and the distribution of S$1.7m in tax-exempt distributable income from Quill Capita Trust, which offset the impact from the loss of income support from One George St. Portfolio occupancy edged up to 97.6% as at end 3Q13, versus 95.8% in the previous quarter," said OCBC in analyzing the results.

"In addition, as a result of continued rental reversions, CCT’s average committed office portfolio rentals increased to S$8.03psf from S$7.96psf," it added.