Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST
Research House: Nomura
Nomura Research in an Apr 19 research report says: "CCT's 1QFY11 results were slightly ahead of our and consensus full year forecasts on a pro-rata basis, principally on account of net property income margin.
"Negative rental reversion was largely anticipated but demand for space at Capital Tower and Six Battery Road remained firm, in our view. Along with the results, the manager also announced the redevelopment of the Market Street Car Park, which will be a 40:60 JV with parent CAPL. Based on preliminary estimates, we project the redevelopment internal rate of return at 5.2%.
"Considering this is in effect the deployment of proceeds from the sale of Robinson Point at a reversionary yield of 4.9% and the competitive environment to pursue acquisitive growth, we believe this is a logical way to create some value for unit-holders in the longer run. Price target of $1.81. MAINTAIN BUY."
Company Name: CAPITACOMMERCIAL TRUST
Research House: Nomura
Nomura Research in an Apr 19 research report says: "CCT's 1QFY11 results were slightly ahead of our and consensus full year forecasts on a pro-rata basis, principally on account of net property income margin.
"Negative rental reversion was largely anticipated but demand for space at Capital Tower and Six Battery Road remained firm, in our view. Along with the results, the manager also announced the redevelopment of the Market Street Car Park, which will be a 40:60 JV with parent CAPL. Based on preliminary estimates, we project the redevelopment internal rate of return at 5.2%.
"Considering this is in effect the deployment of proceeds from the sale of Robinson Point at a reversionary yield of 4.9% and the competitive environment to pursue acquisitive growth, we believe this is a logical way to create some value for unit-holders in the longer run. Price target of $1.81. MAINTAIN BUY."
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