CapitaCommercial Trust

CapitaCommercial Trust (CTCT): Management has confirmed that the positive leasing trend in 4Q13 has carried into 1Q14, and that office rents are clearly on the rise. Although gearing is low (29% as at 31 Dec 2013), management sees extremely limited acquisition opportunities in Singapore because capital values are still high. Daiwa maintains its BUY rating and TP of $1.69, views CCT as one of the best proxies for the rental recovery in the Singapore office sector.