Singapore Stock Market News

Capitacommercial Trust - Business as usual

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Publish date: Sun, 26 Oct 2014, 08:31 PM
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CCT's 8.4% revenue growth in 3Q14 was underpinned by positive rental reversions and stable occupancy. 9M14 DPU was broadly in line, at 76% of our full-year forecast. With office rents continuing to tick up, CCT's earnings growth will be driven by positive renewals and new contributions from CapitaGreen from FY15. We have nudged up our estimates by 1.9% for FY14 and 0.6% for FY15 on a slight realignment of interest cost and NPI margins.

We also raise our DDM-backed target price to S$1.68. While we remain upbeat on the office sector, we believe that CCT's 1x P/BV has factored in the optimism and maintain our Hold call.
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