Company Name: CAPITACOMMERCIAL TRUST
| Research House: CIMB | Price Call: BUY | Target Price: 1.41 |
CIMB Research raised its target price for CapitaCommercial Trust to $1.48 from $1.41 and kept its ‘loutperform’ rating as it expects the trust to see higher rents.
Units of CapitaCommercial rose 1.1% to $1.345. They have surged 27.5% so far this year, compared with the FT ST Real Estate Investment Trust’s 20.8% gain.
CapitaCommercial said on Friday its second-quarter distribution per unit rose 7.3% to 2.06 centsfrom a year ago.
“With more lease expiries in 2013 and low expiring rents, we think CapitaCommercial Trust could offer the strongest rental reversion next year among office real estate investment trusts,” CIMB said in a report.
Separately, OCBC Investment Research also raised its target price for CapitaCommercial to $1.31 from $1.14 and maintained its ‘neutral’ rating.
It expects short-term vacancy rates to stabilise for the rest of the year due to limited new supply in Singapore’s central business district until the second half of 2013.
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