SINGAPORE (April 15): DBS Vickers Securities is maintaining its “buy” recommendation for CapitaLand Commercial Trust with a higher target price of $1.53 versus $1.45 previously.
DBS says CCT offers investors earnings stability in an uncertain market as over 70% of its leases aren't due for renewal before 2018.
However, the house says the excess office space set to be dumped in the market could yet be a risk.
Singapore's office market outlook will likely remain muted over the next two years as a large amount of new building space gets completed, putting pressure on rents.
DBS also notes that the office real estate investment trust has low loan levels, with its net gearing only at 30% of equity.
At 4.08pm, CCT is up 0.7% at $1.43.
DBS says CCT offers investors earnings stability in an uncertain market as over 70% of its leases aren't due for renewal before 2018.
However, the house says the excess office space set to be dumped in the market could yet be a risk.
Singapore's office market outlook will likely remain muted over the next two years as a large amount of new building space gets completed, putting pressure on rents.
DBS also notes that the office real estate investment trust has low loan levels, with its net gearing only at 30% of equity.
At 4.08pm, CCT is up 0.7% at $1.43.
