Capitaland Commercial Trust (SGX:C61U)'s Q2 DPU Dropped By 23%

Image Source: Capita Commercial Trust's Website

Capitaland Commercial Trust (SGX:C61U)'s 1st half DPU was down 24.1% to 3.34¢. It is currently trading at 3.9% yield based on the last traded share price of $1.71 on 15 Sep.

Key Highlights:

  • Distribution per unit (DPU) and Dividend Yield (3.9%)

  • Price to book ratio (0.95)

  • Gearing (36.4%)

  • Interest coverage ratio (5.3x)

  • Portfolio occupancy rate (95.2%)

  • Growth catalyst

Background of Capitaland Commercial Trust

CapitaLand Commercial Trust is the largest listed commercial REIT in Singapore. It manages a portfolio of around S$11 billion, consist of eight prime commercial properties in Singapore and two properties in Frankfurt, Germany. CapitaLand Commercial Trust’s Singapore properties are strategically located within the Central Business District, and this makes its portfolio attractive and resilience.

1. Distribution per unit and dividend yield

In its second quarter 2020 result, Capitaland Commercial Trust's net property income dropped 9.7% to S$70.8m. The contribution from its new asset, Main Airport Centre and higher income from Gallileo were eroded by lower occupancies and rental waivers to its tenants. Based on its latest price, the REIT is currently trading at about 3.9% dividend yield. Before the recent drop in DPU due to Covid-19, the REIT has been maintaining very consistent DPU over the years.

REIT's Deepdive - DPU Trend

2. Price to book ratio