CCT

CCT: FY12 results in line. Revenue was $375.8m, +4% yoy, mainly due to new contribution from Twenty Anson acq in Mar ’12. All properties recorded higher revenue yoy, except for asset enhancement works at Six Battery Road, and the redevt of CapitaGreen (former Market Street Car Park). On outlook, mgt highlights that the Deed of Yield Protection related to the purchase of One George Street (OGS) will cease on 10 Jul 2013. The Deed guarantees a min net property income (NPI) of $49.5m pa, being 4.25% pa of $1.165b, being the purchase price of OGS. As a result, the net property income performance of OGS is expected to be affected thereafter. Note that the shortfall in OGS’ NPI for FY12 amounted to $18.1m, higher than the shortfall of $5m in FY11, due to lower occupancies and negative rent reversions. DPU is 8.05 cts, +7% yoy, translating to a yield of 4.75%. Distributions are paid semi-annually. Distribution for 2H12 amounts to 4.08 cts, assuming none of the outstanding convertible bonds are converted before the books closure date. The counter trades at 1.06x P/B.