Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST
CIMB in a Sep 26 research report says: "YTD, CCT has been the worst performing S-REIT in our coverage, underperforming the STI and FSTREI by 15% and 20% respectively.
"Trading at 0.7x P/BV and offering DPU yields of 7%, we believe the market is valuing it at distress valuations, unjustified on account of its stronger balance sheet than the last crisis and the other S-REITs. Rental and occupancy downside (vs. the other office S-REITs) is also mitigated by NPI yield support from One George Street and its under-rented Capital Tower and HSBC Building.
"We lower our DDM target price to $1.17 (discount rate 8.6%) from 1.25 on 1-6% DPU reductions after cutting our rental and occupancy assumptions and while we retain our caution on the office sector, we upgrade CCT. UPGRADE TO TRADING BUY."
Company Name: CAPITACOMMERCIAL TRUST
| Research House: CIMB | Price Call: TRADING BUY | Target Price: 1.17 |
CIMB in a Sep 26 research report says: "YTD, CCT has been the worst performing S-REIT in our coverage, underperforming the STI and FSTREI by 15% and 20% respectively.
"Trading at 0.7x P/BV and offering DPU yields of 7%, we believe the market is valuing it at distress valuations, unjustified on account of its stronger balance sheet than the last crisis and the other S-REITs. Rental and occupancy downside (vs. the other office S-REITs) is also mitigated by NPI yield support from One George Street and its under-rented Capital Tower and HSBC Building.
"We lower our DDM target price to $1.17 (discount rate 8.6%) from 1.25 on 1-6% DPU reductions after cutting our rental and occupancy assumptions and while we retain our caution on the office sector, we upgrade CCT. UPGRADE TO TRADING BUY."
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