3Q14 distributable income increased 4.8% YoY to S$61.6m. This cumulates to an YTD distributable income of S$185.6m, which we deem to be in line with expectations and comprises 76.4% of our FY14 forecast. 3Q13 DPU is 2.1 S-cents – this is 2.9% or 0.06 S-cents higher than the 2.04 S-cents paid out in 3Q13 and translates to a distribution yield of 5.2% based on CCT’s last closing price. The growth in distributable income in 3Q14 was mainly due to higher contributions from portfolio assets, except for Wilkie Edge, and stronger NPI and distributable income from RCS Trust as well. Management reports that CapitaGreen remains on track to be completed by the end of FY14. The trust has secured aggregate lease commitments for 40% (279.5k sq ft) of total NLA. We continue to expect contributions from CapitaGreen to MSO Trust from 2H15 onwards, and to CCT’s distributable income from FY16. Maintain HOLD with an unchanged fair value estimate of S$1.67.
3Q14 figures line with expectations
3Q14 distributable income increased 4.8% YoY to S$61.6m. This cumulates to a YTD distributable income of S$185.6m, which we deem to be in line with expectations and comprises 76.4% of our FY14 forecast. 3Q13 DPU is 2.1 S-cents – this is 2.9% or 0.06 S-cents higher than the 2.04 S-cents paid out in 3Q13 and translates to a distribution yield of 5.2% based on CCT’s last closing price. The growth in distributable income in 3Q14 was mainly due to higher contributions from portfolio assets, except for Wilkie Edge, and stronger NPI and distributable income from RCS Trust as well. In terms of the topline, gross revenues over the quarter also grew 8.4% YoY to S$66.4m due to overall positive rental reversions across CCT’s asset portfolio.
Positive rental reversion for leases committed
Portfolio occupancy remained stable at 99.4% as of end 3Q14 versus the previous quarter. As a result of strong office rentals and positive rental reversions for leases committed, we saw a significant QoQ increase in CCT’s average committed office portfolio rentals from S$8.23 to S$8.42/sq ft. Over the quarter, the trust also signed leases for 131k sq ft of space, of which 17% are new leases, and the portfolio WALE (weighted average lease term to expiry) as at end Sep-14 stands at 7.7 years. CCT continues to enjoy a healthy balance sheet, with gearing at 30.2% as at end 3Q14 and an average cost of debt of 2.3%.
CapitaGreen now 40% pre-committed
Management reports that CapitaGreen remains on track to be completed by the end of FY14. The trust has secured aggregate lease commitments for 40% (279.5k sq ft) of total NLA and is in advanced stages of negotiation for another 75k of NLA, which will bring commitments to 50% by end FY14. We continue to expect contributions from CapitaGreen to MSO Trust from 2H15 onwards and to CCT’s distributable income from FY16. Maintain HOLD with an unchanged fair value estimate of S$1.67.
3Q14 distributable income increased 4.8% YoY to S$61.6m. This cumulates to a YTD distributable income of S$185.6m, which we deem to be in line with expectations and comprises 76.4% of our FY14 forecast. 3Q13 DPU is 2.1 S-cents – this is 2.9% or 0.06 S-cents higher than the 2.04 S-cents paid out in 3Q13 and translates to a distribution yield of 5.2% based on CCT’s last closing price. The growth in distributable income in 3Q14 was mainly due to higher contributions from portfolio assets, except for Wilkie Edge, and stronger NPI and distributable income from RCS Trust as well. In terms of the topline, gross revenues over the quarter also grew 8.4% YoY to S$66.4m due to overall positive rental reversions across CCT’s asset portfolio.
Positive rental reversion for leases committed
Portfolio occupancy remained stable at 99.4% as of end 3Q14 versus the previous quarter. As a result of strong office rentals and positive rental reversions for leases committed, we saw a significant QoQ increase in CCT’s average committed office portfolio rentals from S$8.23 to S$8.42/sq ft. Over the quarter, the trust also signed leases for 131k sq ft of space, of which 17% are new leases, and the portfolio WALE (weighted average lease term to expiry) as at end Sep-14 stands at 7.7 years. CCT continues to enjoy a healthy balance sheet, with gearing at 30.2% as at end 3Q14 and an average cost of debt of 2.3%.
CapitaGreen now 40% pre-committed
Management reports that CapitaGreen remains on track to be completed by the end of FY14. The trust has secured aggregate lease commitments for 40% (279.5k sq ft) of total NLA and is in advanced stages of negotiation for another 75k of NLA, which will bring commitments to 50% by end FY14. We continue to expect contributions from CapitaGreen to MSO Trust from 2H15 onwards and to CCT’s distributable income from FY16. Maintain HOLD with an unchanged fair value estimate of S$1.67.
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