CCT

CCT: reports 2Q10 results. Net property income flat, but distributable income +16% yoy to $55.7m, on the back of lower property operating expenses and lower interest cost as CCT pared down borrowings. Qtrly DPU is 1.97cts, +15.2% adjusted for rights issue in FY09, translating to 5.9% annualized yield

Of note was the slight recovery in office market rents in 2Q10, following six quarters of decline. Committed occupancy rate increased to 95.6% from 95.1% qoq. NPI should decline going forward, following recent asset sales in Starhub Centre and Robinson Point, although completion of AEI at Raffles City in 2H10 could offset the impact some what. So far, take-up has been positive, with 86% of the new AEI space committed. Stock last traded at $1.33, vs reported NAV/unit of $1.36.