Rental growth window narrowing for CapitaCommercial Trust

Rent increases will slow down from 2H15.

CapitaCommercial Trust will be hard-pressed to raise rents further starting 2H15, which could dent the firm's robust stock outperformance.

According to BNP Paribas, CCT has outperformed the S-REIT index by 16% in the past 12
months and the positives of the office rent market appers to be mostly priced in.

"We expect 3.6m sq ft of planned new office completions in 2016 to slow down rent increases from 2H15 (e.g. Marina One, Guoco Tower). Grade A market rents rose to SGD11.20 psf at end-FY14, up 15% y-y, and we expect them to rise another 10% by end-FY15. As the average rent of CCT’s remaining leases expiring in 2015 is SGD8.99 psf, and with 12% of gross rental income nearing lease expiry, we expect further reversions to boost rental income," statd the report.
 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

DBS and OCBC expected to deliver steady Q1 net profits
Their net interest margins will ease as a result of their Hong Kong loans.
Singapore's maritime cluster navigates towards digital, green future
Adapting to emerging challenges, such as the adoption of alternative fuels, is deemed crucial for the country's maritime sector.
Shipping & Marine
SCG and A*STAR unveil joint labs for cellular immunotherapy enhancement
The partnership has a funding of nearly $30m supported under Singapore's Research, Innovation and Enterprise 2025 plan.
Healthcare