CCT announced a 2Q17 DPU of 2.27 S-cents which increased 3.2% YoY over the 2.20 S-cents reported in 2Q16. 2Q17 distributable income also grew by 6.7% YoY from S$65.1m to S$69.5m due to stronger contributions from CapitaGreen. 2Q17 gross revenues similarly increased by 29.5% YoY to S$87.5m while net property income grew 34.4% YoY to S$69.1m.

1H17 net property income and distributable income to unitholders cumulates to 49.0% and 50.7% of our full year forecast, respectively, and we deem these numbers to be within expectations.

The trust’s committed occupancy rate was maintained at a healthy 97.6% as at end June 2017, despite difficult conditions in the office market, and the management recently affirmed their decision to redevelop Golden Shoe Car Park into an integrated development through a JV structure.

Maintain HOLD with an unchanged fair value estimate of S$1.69.

Source: OCBC Research - 19 Jul 2017