Capitaland Commercial Trust: (S$1.555) 2Q in line; waning demand now a reality
- Gross revenue and NPI slid 2.2% and 4.5% on lower occupancies, increased property tax and leasing commission incurred.
- Distributable income rose 1% thanks to higher JV contribution from the commencement of leases at 40% owned CapitaGreen.
- Leases expiring in 2016 have been mostly secured, with 11%/5% of office/retail leases to expire from now to end-2017.
- Going forward, CCT expects the ongoing acquisition of the remaining 60% stake in CapitaGreen to be the REIT's growth driver for DPU in 2016 and 2017.
- Estimated pro forma DPU of 2.24¢ implies distribution yield of 5.8%.