Capitaland Commercial Trust DPU Fell 25 Percent In 1Q2020


Capitaland Commercial Trust had released their 1Q2020 financial results on 29th April 2020.

Gross revenue increased by 3.8% to S$103.6 million. This was largely attributed to contributions from Main Airport Center which was acquired in September 2019 as well as higher revenue at 21 Collyer Quay, Gallileo and CapitaGreen.

Property operating expenses increased by 16.6% from S$20 million in 1Q2019 to S$23.3 million in 1Q2020. This was due to the addition of Main Airport Center and Bugis Village’s rental payable under the master lease with SLA.

Similar to other REITs, Capitaland Commercial Trust is also retaining capital due to uncertainty caused by the COVID-19 pandemic. This had caused the distributable amount to decrease by 23% as compared to 1Q2019.

A Distribution Per Unit (“DPU”) of 1.65 cents was declared. This is a decline of 25% as compared to 2.20 cents paid out in 1Q2019.

1Q2020 Financial Results

Gross Revenue103.699.83.8%
Net Property Income80.379.80.7%
Distributable Amount (Before Capital Retention)70.282.7(15.2)%
Distributable Amount (After Capital Retention)63.782.7(23.0)%
Distribution Per Unit (“DPU”) (cents)1.652.20(25.0)%


The total portfolio occupancy for Singapore and Germany stood at 95.2%.

CapitaGreen’s lower occupancy was due to the downsizing of a tenant pre-COVID-19.

Six Battery Road’s occupancy decline due to expiry of Standard Chartered’s lease in January 2020 and start of asset enhancement initiative.

Raffles City’s office occupancy is at 92.2% due to downsizing of a tenant with lease expiring after 31 December 2019, while retail occupancy is at 98.5%.


Gearing ratio stood at 35.5% with S$600 million green loans obtained. This increased the percentage of sustainability funding.

Current Dividend Yield

Based on a total of 8.88 cents paid out in 2019 and the current share price of S$1.54, this translate to a current dividend yield of 5.77%. This is slightly unattractive to me as I am expecting office REITs to have a dividend yield of above 6%.

Since the dividend for 1Q2020 is cut, I believe the estimated yield is even lower than the current.


I like Capitaland Commercial Trust for its quality Grade A office assets. The current dividend falls below my expectations as I will expect an office REIT to provide a dividend yield of 6% or more. If I were to buy into Capitaland Commercial Trust, I will wait for the share price to decline further before buying.

If you are not aware, Capitaland Commercial Trust is merging with Capitaland Mall Trust. Since I already own Capitaland Mall Trust, I am less interested to buy into Capitaland Commercial Trust.

You can read more on the merger between Capitaland Commercial Trust and Capitaland Mall Trust here.


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