SGX Stocks and Warrants

Author: kimeng   |   Latest post: Tue, 22 May 2018, 10:06 AM


CapitaLand Commercial Trust: Office Market Recovering Well

Author:   |    Publish date:

CapitaLand Commercial Trust (CCT) reported its 1Q18 results this morning which came in within our expectations. Gross revenue and NPI jumped 7.7% and 10.5% YoY to S$96.4m and S$77.2m, respectively. The latter formed 25.5% of our FY18 forecast.

Growth was underpinned largely by a full-quarter contribution from the acquisition of Asia Square Tower 2 (AST2) and organic growth from CapitaGreen, but partially offset by divestments made.

DPU dipped 11.7% YoY to 2.12 S cents as a result of an enlarged unit base arising from a rights issue exercise and conversion of convertible bonds in FY17. This accounted for 23.9% of our FY18 forecast.

Encouragingly, CCT highlighted that it managed to secure committed rents largely above its expiring rents in 1Q18. Committed rents at AST2, Six Battery Road and One George Street were S$11.00-S$13.90, S$12.00-S$13.00 and S$9.50-S$11.40, versus average expired rents of S$11.77, S$12.22 and S$9.50, respectively.

This was in-line with the continued office market recovery, as core Grade A CBD office rents rose 3.2% QoQ to S$9.70 psf/month in 1Q18 following the 3.3% sequential increase in 4Q17, based on CBRE data.

We will provide more details after speaking with CCT.

For now, we have a HOLD rating and S$1.84 fair value estimate on the stock.


Source: OCBC Research - 24 Apr 2018

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Chart Stock Name Last Change Volume 
CapitaCom Trust 1.74 +0.01 (0.58%) 8,777,100 

Market Buzz

Date Type Subject
18-May-2018 Announcement Disclosure of Interest/ Changes in Interest
18-May-2018 Announcement REPL::Placements::Close of Private Placement of 130,000,000 New Units in CapitaLand Commercial Trust
18-May-2018 Announcement Request for Lifting of Trading Halt::Request for Lifting of Trading Halt
17-May-2018 Announcement Request for Trading Halt::Request for Trading Halt
17-May-2018 Announcement Asset Acquisitions and Disposals
17-May-2018 Announcement Placements::Launch of Private Placement of 130,000,000 New Units in CapitaLand Commercial Trust
17-May-2018 Announcement Cash Dividend/ Distribution::Mandatory

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