Wednesday, June 30, 2010

CapitaCommercial Trust’s (CCT)

CapitaCommercial Trust’s (CCT) share price has outperformed the FSTREI Index by about 4.5% YTD due to the re-rating of the Singapore office sector. This is mainly buoyed by the government’s forecast of robust GDP growth of 7-9%, as well as the strong pre-leasing commitments announced by landlords of the upcoming office developments. Occupancy rates of existing office developments have been holding up well so far.

In addition, CCT’s management is taking proactive measures to stay competitive. It has sold Robinson Point and will embark on asset enhancement at Six Battery Road to the tune of $92m. It is also reviewing the option of divesting StarHub Centre. These are efforts aimed at reconstituting its portfolio with a greater bias towards Grade A office properties. Based on last closing price of $1.22, the REIT still offers yield of about 6.2%.

No comments:

Post a Comment