Wednesday, January 19, 2011

CapitaCommercial Trust

CapitaCommercial Trust: 4Q10 results weaker yoy and sequentially, but seems within Street expectations. Net property income at $70.9m, -11.4% yoy, -7.1% qoq. Net income at $45m, -18.4% yoy, -10% qoq. This was mainly due to loss in rental income following completion of sales of StarHub Centre and Robinson Point.
DPU at 1.94cts/sh, +3.2% yoy, -2.6% qoq...

On outlook, mgt cautions that in 2011, the sheer volume of new supply (3m sf) may temporarily exceed take-up, leading to higher vacancy rates and moderating rental growth. Says also that negative rental reversions (prime rentals still 48% below peak levels in 2008 ) may negatively impact operating revenue in 2011. Expects prospects to pick up again from 2012 when new supply drops.
Stock trades at 5.1% annualized yield...

Pre-results, the Street had a mix of Buy, Sell and Hold calls, with targets ranging $1.35-1.81.

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