CapitaCommercial Trust (CCT) reported 4Q13 distributable income of S$60.2m – 3.3% higher YoY. This cumulates to a FY13 distributable income of S$234.2m, up 2.5% YoY, which is within expectations and make up 102.1% of our forecast. 4Q13 DPU is 2.09 S-cents, cumulating to a 8.14 S-cent DPU for FY13 and translates to a 5.5% distribution yield based on the last closing price of S$1.49. The growth in distributable income was mainly due to higher revenue contributions across portfolio properties and a full year contribution from Twenty Anson. Its portfolio occupancy remained stable at 98.7% as of end 4Q13, versus 97.6% in the previous quarter. As a result of continued rental reversions, CCT’s average committed office portfolio rentals increased QoQ from S$8.03 psf to S$8.13 psf. We would speak further with management regarding these results and, in the meantime, maintain BUY with our fair value estimate of S$1.61 under review.

Source: OCBC Research - 23 Jan 2014