CCT

CCT: 3Q14 results in line with street expectations; Distributable income grew 4.8% to $61.6m, while DPU was up only 2.9% y/y to 2.1¢, due to a 2.2% increase in units from the conversion of convertible bonds (2.3m units) and asset management fees (1.9m). Gross revenue and NPI improved 8.4% and 8.6% to $66.4m and $51.9m respectively, buoyed by a 4.9% increase in average office portfolio rent from $8.03 to $8.42 psf. Overall portfolio occupancy at 99.4%, reportedly above market occupancy rate of 96.6%. Gearing of 30.2% provides $1.2b debt headroom assuming 40% gearing, with average cost of debt at 2.3%. NAV of $1.69. Latest broker ratings: OCBC maintains Hold with TP of $1.67.