SINGAPORE (July 17): The manager of CapitaLand Commercial Trust (CCT) has reported a distribution per unit (DPU) of 2.20 cents for 2Q19 ended June 30.

This translates into a 1.9% increase from the 2Q18 DPU figure of 2.16 cents.

Both gross revenue and net property income increased by 3.0% and 0.8% to $100.9 million and $78.4 million respectively.

Consequently, CCT’s distributable income figure rose 3.8% y-o-y, to $82.4 million.

The improved figures were largely attributable to the acquisition of Gallileo and higher revenue from 21 Collyer Quay, Asia Square Tower 2 and Capital Tower.

They were also offset by the divestment of Twenty Anson, and lower revenue from Bugis Village and Six Battery Road.

Cash and cash equivalents increased 21% from 2Q18 to $201.2 million.

Portfolio occupancy remains resilient at 98.6% as at June 30 2019 -- above the market average of 95.8%.

As at June 30, CCT’s total deposited property value was $11.3 billion. Net asset value per unit was $1.81, after adjusting for 1H19 distributable income.

In its outlook, CCT’s manager notes that Singapore’s average monthly Grade A office market rent increased by 11.9% year-on-year in 2Q19 to $11.30 psf, and expects Singapore’s office market rent to see continued growth in 2019.

As part of the proactive management of existing operational assets, the manager plans to start refurbishment and asset repositioning for 21 Collyer Quay and Six Battery Road respectively in 2020. The manager this morning also announced CCT’s proposed acquisition of a 94.9% stake in Main Airport Center in Frankfurt, Germany, for EUR 251.5 million ($387.1 million).

Units in CCT closed at 2.18 cents on Tuesday.