CCT's 2011 distributable income falls to S$212.8m

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CapitaCommercial Trust (CCT) has recorded a distributable income of S$212.8 million for the fiscal year 2011, down 3.7 percent from S$221.0 million a year ago, attributed mainly to lack of income contribution after the sales of Robinson Point and StarHub Centre in 2010 as well as the redevelopment of Market Street Car Park (pictured).

“The Trust has done well in FY 2011 even though distribution per unit declined marginally,” said Richard Hale, Chairman of CapitaCommercial Trust Management Ltd (CCTML), the manager of CCT. “The sale in 2010 of two properties at good prices and sale of Market Street Car Park during 2011 to a joint venture resulted in reduced rental income.”

Despite slower leasing momentum in the Singapore office market due to the economic uncertainty, Ms Lynette Leong, Chief Executive Officer of CCTML, said the trust’s properties remain attractive, “resulting in an aggregate of 555,500 sq ft of office space having been signed or renewed in 2011.”

The trust also successfully completed the refinancing of Raffles City Singapore’s S$964.0 million commercial mortgage-backed securities and secured revolving credit facility due in September 2011.

Meanwhile, the redevelopment of Market Street Car Park is on schedule, and Hale said “the enhancement in the site’s land and asset value due to the redevelopment plan has greatly benefitted the trust.”

“This redevelopment and our continued improvements at Six Battery Road are in line with our strategy to create value. Our prudent capital management has strengthened the trust’s balance sheet, resulting in a low gearing ratio of 30.2 percent.”

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