Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST
OCBC said although CCT's distributable income of $212.8 million for 2011 was in line with its forecasts, it expects office rents to decline further this year.
Company Name: CAPITACOMMERCIAL TRUST
| Research House: OCBC | Price Call: BUY | Target Price: 1.29 |
OCBC Investment Research has cut its target price for CapitaCommercial Trust (CCT) (CACT.SI), which owns office properties, to $1.29 from $1.41 but kept its buy rating.
By 9:03 a.m., units of CCT were flat at $1.145. They have fallen about 24% since the start of last year.
By 9:03 a.m., units of CCT were flat at $1.145. They have fallen about 24% since the start of last year.
OCBC said although CCT's distributable income of $212.8 million for 2011 was in line with its forecasts, it expects office rents to decline further this year.
However, the brokerage said it continues to like the trust for its quality portfolio and strong execution by the management.
OCBC also noted the redevelopment of its Market Street property in downtown Singapore remains on track. Also, 100% of the upgraded space of Six Battery Road office building in the central business district has been pre-committed.
Overall portfolio occupancy remained flat at 97.2% for CCT in the fourth quarter, which is higher than the industry average of 91.2%, OCBC said.
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