CCT

CCT
- 3Q16 DPU of 2.3¢ (+7.5%) matched expectations, bringing 9M16 DPU to 6.69¢ (+3.7%), representing 76% of street FY16 estimate.
- Revenue and NPI rose to $74.4m (+8.9%) and $57m (+8.3%), respectively, thanks to full contribution from CapitaGreen which was fully acquired at end-Aug (previously: 40% stake).
- Rental rates for office space could come under pressure going forward.
- However, Maybank KE believes the oversupply issue has been well flagged and has turned positive on office REITs early last month, citing that REIT prices could react ahead of a bottom to rents.
- Separately, CCT has applied to authorities to rezone its prime asset Golden Shoe Car Park to commercial use.
- At the current price, CCT is trading at 5.8% 3Q annualised yield and 0.9x P/B.