Tag Archives: Singapore REITS

CapitaCommercial Trust’s Q3 DPU up 20% to 1.85 Singapore cents

Posted on 21 Oct 2009 | Comments Off on CapitaCommercial Trust’s Q3 DPU up 20% to 1.85 Singapore cents

CapitaCommercial Trust (CCT) has said its distribution per unit (DPU) for the third quarter ended in September is 1.85 cents.

This is a 20.1 per cent on-year rise, with last year’s DPU restated to 1.54 cents after adjusting for a rights issue.

Distributable income for the third quarter came in at S$52.1 million, up about 21 per cent on-year.

CCT’s CEO, Lynette Leong, said the performance over the period was boosted by proactive lease and cost management strategies.

For the quarter, CCT successfully signed leases with companies such as serviced office operator Servcorp and financial services firm Exane SNC.

Going forward, Ms Leong said she expects positive demand for office space to return and rental rates to stabilise if Singapore’s economic recovery continues. Continue reading →

Comments Off on CapitaCommercial Trust’s Q3 DPU up 20% to 1.85 Singapore cents

Posted in Funds

Tagged , ,

Reits likely to see more drops in asset values

Posted on 21 Oct 2009 | Comments Off on Reits likely to see more drops in asset values

Prices of retail and industrial Reits have yet to reflect risks, says Nomura

REAL estate investment trusts (Reits) are likely to experience more drops in asset values and negative rental reversions, a

Furthermore, the research house believes that prices of retail and industrial Reits have yet to reflect these risks.

‘With asset values likely to see further downward adjustments, the fact that retail and industrial Reits are now trading near to or at premiums to book value appears somewhat inconsistent with property market trends,’ wrote analysts Tony Darwell and Sai Min Chow in an Oct 16 report.

Investor interest has returned to Reits in the last few months as the sector largely managed to refinance its loans. The FTSE Real Estate Investment Trust Index has risen by more than 50 per cent since the start of the year.

But Nomura believes that downside risks remain. It estimates that capitalisation rates – a rough measure of properties’ rates of return – have softened by around 25-75 basis points and could drop by another 25-50 basis points. Continue reading →

Comments Off on Reits likely to see more drops in asset values

Posted in Funds

Tagged , ,