CapitaCommercial Trust

UOBKayhian on 27 Oct 2014

FY14F PE (x): 21.2
FY15F PE (x): 20.2

Results in line with expectations. CapitaCommercial Trust (CCT) reported a 3Q14
distributable income of S$61.6m (+4.8% yoy, -3.9% qoq) and a DPU of 2.18 cents
(+5.3% yoy, -3.7% qoq).
Securing 40% pre-commitments for CapitaGreen (2Q14: 23%) with pre-commitments in
3Q14 from A.M. Best Asia-Pacific (Singapore) Pte Ltd, BCD Travel Asia Pacific Pte Ltd,
Freight Investor Services Pte. Ltd., Total Gas & Power Asia Private Limited., and
Watson, Farley & Williams Asia Practice LLP. Management mentioned that they are in
advanced stages of negotiation for another 75,000sf of space, positioning them well to
achieve 50% target leasing commitments by end-14. We expect CCT to achieve rents
of over S$11psfpm for the entire building. Maintain BUY with an unchanged target of
S$1.88, based on DDM (required rate of return: 7.2%, terminal growth: 2.2%).