CapitaCommercial Trust (CCT) reported 1Q13 distributable income of S$55.7m – up 3.3% YoY. This translates to a 1Q13 DPU of 1.96 S-cents, which is 3.2% above the 1.90 S-cents paid in 1Q12. We see this to be in line with expectations and 1Q13 distributable income now makes up 24% of our full year forecast. The growth in distributable income was mainly due to a full contribution from 20 Anson (acquired in Mar-12) and higher rentals at HSBC Building. CCT’s portfolio occupancy remained fairly stable at 95.3% in 1Q13, down marginally from 97.2% in 4Q12, mainly due to Cisco’s relocation from Capital Tower. We continue to see positive rental reversion in the portfolio – average monthly portfolio rents increased from $7.64 psf in 4Q12 to $7.83 psf in 1Q13. In addition, CapitaGreen remains on track for completion in 4Q14. Maintain BUY with a fair value estimate of S$1.80.
1Q13 DPU up 3.2% YoY
CapitaCommercial Trust (CCT) reported 1Q13 distributable income of S$55.7m – up 3.3% YoY. This translates to a 1Q13 DPU of 1.96 S-cents, which is 3.2% above the 1.90 S-cents paid in 1Q12. We see this to be in line with expectations and 1Q13 distributable income now makes up 24% of our full year forecast. The growth in distributable income was mainly due to a full contribution from 20 Anson (acquired in Mar-12) and higher rentals at HSBC Building. In addition, 1Q13 topline grew 9.7% to S$95.9m – again within expectations and forming 25% of our full year estimate.
Positive rental reversion continues
CCT’s portfolio occupancy remained fairly stable at 95.3% in 1Q13, down marginally from 97.2% in 4Q12, mainly due to Cisco’s relocation from Capital Tower. We continue to see positive rental reversion in the portfolio – average monthly portfolio rents increased from $7.64 psf in 4Q12 to $7.83 psf in 1Q13. ~26.8% of portfolio NLA was up for lease renewal in 2013, of which 16.9% has already been committed (88% renewals and 12% new leases). As a result, the weighted average lease term to expiry (top 10 tenants) is lengthened from 3.0 years in 4Q12 to 3.8 years currently. CapitaGreen remains on track for completion in 4Q14. Asset enhancement works at 6BR and Raffles City Tower would complete by end-2013 and 2Q14, respectively.
Maintain BUY
For the remainder of FY13, CCT has only S$50m of debt due in Jun which it could refinance using its undrawn bank facilities. With net gearing at a relatively low 30.4%, we note that CCT has significant debt headroom for acquisitions and asset enhancements. Though management would likely be cautious on the acquisitions front due to the criteria for yield accretion, we believe that acquisitions are still workable in current conditions (low financing costs and DPU yield at 4.7%) and that there is meaningful growth potential ahead. Maintain BUY with an unchanged fair value estimate of S$1.80.
CapitaCommercial Trust (CCT) reported 1Q13 distributable income of S$55.7m – up 3.3% YoY. This translates to a 1Q13 DPU of 1.96 S-cents, which is 3.2% above the 1.90 S-cents paid in 1Q12. We see this to be in line with expectations and 1Q13 distributable income now makes up 24% of our full year forecast. The growth in distributable income was mainly due to a full contribution from 20 Anson (acquired in Mar-12) and higher rentals at HSBC Building. In addition, 1Q13 topline grew 9.7% to S$95.9m – again within expectations and forming 25% of our full year estimate.
Positive rental reversion continues
CCT’s portfolio occupancy remained fairly stable at 95.3% in 1Q13, down marginally from 97.2% in 4Q12, mainly due to Cisco’s relocation from Capital Tower. We continue to see positive rental reversion in the portfolio – average monthly portfolio rents increased from $7.64 psf in 4Q12 to $7.83 psf in 1Q13. ~26.8% of portfolio NLA was up for lease renewal in 2013, of which 16.9% has already been committed (88% renewals and 12% new leases). As a result, the weighted average lease term to expiry (top 10 tenants) is lengthened from 3.0 years in 4Q12 to 3.8 years currently. CapitaGreen remains on track for completion in 4Q14. Asset enhancement works at 6BR and Raffles City Tower would complete by end-2013 and 2Q14, respectively.
Maintain BUY
For the remainder of FY13, CCT has only S$50m of debt due in Jun which it could refinance using its undrawn bank facilities. With net gearing at a relatively low 30.4%, we note that CCT has significant debt headroom for acquisitions and asset enhancements. Though management would likely be cautious on the acquisitions front due to the criteria for yield accretion, we believe that acquisitions are still workable in current conditions (low financing costs and DPU yield at 4.7%) and that there is meaningful growth potential ahead. Maintain BUY with an unchanged fair value estimate of S$1.80.
No comments:
Post a Comment