CapitaCommercial Trust (CCT), Singapore’s first listed commercial REIT with a market capitalisation of $4.3 billion, says distributable income of $221.0 million for the financial year ended 31 December 2010 (FY 2010).
This is 11.3% above the same period last year.
FY 2010 estimated distribution per unit (DPU) of 7.83 cents is a 10.9% year-on-year increase from FY 2009 DPU of 7.06 cents.
The amount will be spent over six years, and works will be carried out in phases until 2013, the company said in presentation slides to the stock exchange today.
CIMB in an Oct 21 research report says: “3Q10 results met Street and our expectations with 9M10 DPU of 5.9 cents forming 78% of our FY10 forecast.
Notes, 1.0% on-year fall in net property income due to loss in rental income resulting from sale of Robinson Point, Starhub Centre.
The following companies may have unusual price changes in Singapore trading today, say Bloomberg and Thomson Reuters. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index fell 0.4% to 3,179.15.
Bulk-shipping companies: The Baltic Dry Index, which measures the cost of shipping commodities, fell 0.6% in London yesterday, extending its decline to a fourth day. Cosco Corp. Singapore (COS SP), a China-based shipbuilder that also operates bulk carriers, was unchanged at $1.96. STX Pan Ocean Co. (STX SP), South Korea’s biggest bulk carrier, lost 1.1% to $14.60.
Nomura lifts CapitaCommercial Trust (C61U.SG) target price to $1.66 from $1.42 after raising FY12-14 DPU estimates by 3%-18% to reflect view of significantly higher office rentals from 2012, keeps Outperform call, says Dow Jones.
Nomura flags CCT as best proxy to play recovery in Singapore office market given its 60% exposure to prime office space: “Forward leasing will accelerate as a supply gap in the office sector emerges.”
CapitaCommercial Trust (C61U.SG) flat $1.33, off 52-week peak of $1.35 set in early trade, with higher 2Q10 DPU, management’s upbeat outlook sustaining interest, says Dow Jones.
2Q10 DPU at 1.97 cents vs 1.71 cents year earlier, 1.93 cents in 1Q10. But as REIT +16.7% since beginning June, incentives to chase are few, with investors awaiting next acquisition move following strengthened balance sheet post-sale of Starhub Centre.
DBS Vickers Securities in a July 19 research report says: “CCT has announced it has entered into an agreement to sell Starhub Centre to Frasers Centrepoint Ltd for $380 million or $1357psf of NLA. This is slightly ahead of our earlier expectation of $320-350 million.
Singapore shares are expected to open higher on Wednesday following gains on Wall Street, which were led by shares of Goldman Sachs, and on strong quarterly results from some Singaporean property counters.
Singapore’s benchmark Straits Times Index (.FTSTI) rose 0.11% on Tuesday to 2,948.61 points.
CapitaCommercial Trust (CACT.SI), managed by CapitaLand (CATL.SI), said today its second-quarter distributable income rose 15.9% on a higher rental contribution and lower property operating expenses.
It had a distributable income of $55.67 million in April-June, compared with $48.02 million from the year-earlier period.
Its distribution per unit rose 15.2% from a year ago to 1.97 cents in the second quarter.
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CIMB in a July 19 research report says: “CCT announced that it will be selling Starhub Centre to Fraser Centrepoint Ltd (FCL) for $380 million or 42.5% above the last valuation. The proceeds from the sale are earmarked for acquisitions and debt repayment. We are positive on the sale due to the premium sale price and believe the lowered asset leverage positions CCT well for future refinancing needs.
CapitaCommercial Trust (C61U.SG) off 0.8% at $1.31 in thin trade with widely-expected sale of Starhub Centre in Singapore, for $380 million, failing to stir interest.
“Catalysts, in our view, for the stock remains its ability to pursue yield-accretive acquisitions to replenish its portfolio or potential redevelopment of some of its older properties,” says DBS Vickers, which has Hold call with $1.30 target.
Singapore shares may fall today, hit by a drop on Wall Street on Friday as key US indices slumped on dismal consumer sentiment data and poor revenues from Bank of America (BAC.N) and Citigroup (C.N).
Singapore’s benchmark Straits Times Index <.FTSTI> rose 0.48% on Friday to 2,957.72 points.
CapitaCommercial Trust, a commercial property developer in Singapore, said it will gain about $109.1 million from the sale of an office building in the tourist district to raise funds for future acquisitions.
Starhub Centre, a 10-storey office block with retail space, was sold to Frasers Centrepoint for $380 million, CapitaCommercial Trust said in a statement to the Singapore exchange today.
The developer sold the property after extending the lease and applying for a residential-commercial development permit from the government. About 68% of the lettable space of 280,069 sf was occupied as of March, CapitaCommercial Trust said.
The manager of the trust was of the view the “property has reached its optimal stage of life cycle as an office building” and CapitaCommercial should sell it and not expose itself “to undue residential development and market risks,” according to the statement.
Frasers Centrepoint, a unit of Frasers & Neave, said the purchase will expand its landbank to 2.2 million sf, and its “strategic location in the heart of Orchard Road” gives its potential for high-end mixed residential and retail development, the company said in a separate statement, citing Chief Executive Lim Ee Seng.
Singapore’s private home prices rose 5.2% in the second quarter from the previous three months, the Urban Redevelopment Authority said on July 1.
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Macquarie upgrades CapitaCommercial Trust (C61U.SG) to Outperform from Neutral, lifts target price to $1.40 from $1.13 to assume higher prime office rents in Singapore, according to Dow Jones.
Macquarie tips average rents +8% this year to $7.30 psf, +10% to $8.00 psf by end 2011, “a recovery in financial services employment and better-than-expected take-up have led to higher occupancy levels.”
OCBC Investment Research downgrades CapitaCommercial Trust (C61U.SG) to Hold from Buy on limited upside to its $1.26 target price after recent run-up on hopes office landlord will sell its Starhub Centre in Singapore, says Dow Jones. CCT still evaluating options for property.
DBS Vickers Securities in a May 31 research report says: “CCT has proposed to embark on asset enhancements for 6 Battery Rd. To be completed in phases over October 2010-2015, the $92 million initiative will be funded internally (current gearing 33.8%) and yield a ROI of 8.1% or $7.4 million additional net property income.
CapitaCommercial Trust (C61U.SG) fails to hold on to gains, now flat at $1.13 vs $1.15 earlier, says Dow Jones.
CapitaCommercial Trust (C61U.SG) off 0.9% at $1.09 in thin trade, hardly moved by office landlord’s decision to carry out $92 million upgrading of its prime Singapore property at Six Battery Road, according to Dow Jones.
Singapore’s benchmark Straits Times Index rose 1.7% to 2,696.02 points on Wednesday.
Singapore stocks are expected to face selling pressure on Thursday following an overnight drop on Wall Street that sent the Dow Jones industrial average below the 10,000 level for the first time since Feb 8.
