Broker's take: CCT gets boost from higher stake in CapitaGreen, says OCBC

CAPITALAND Commercial Trust's (CCT) fourth-quarter results for 2016 was deemed mostly within expectations, according to a note by OCBC Investment Research.

Distributable income increased 10.1 per cent year on year mainly due to increased contributions from its higher stake in CapitaGreen. Its estimated distribution per unit (DPU) grew 10.1 per cent to 2.39 Singapore cents.

In terms of the top line, Q4 2016 gross revenues and net property income increased 32.7 per cent and 35.4 cent to S$89.7 million and S$70.8 million, respectively. This is again primarily due to CCT's increased stake in CapitaGreen, now at 100 per cent after the completion of the stake acquisition in August 2016.

OCBC maintains a "hold" on CCT and has increased its fair value estimate to S$1.53 from S$1.39.