DPU growth for Q2 was soft, with an increase of only 0.5%. DPU is up 2.1% over the first half of 2015 which seems to have been reflected in CCT's weak stock price.
The 4.31 cents mid year payout represents a yield of 2.9% based on the closing price of 1.47, if they can at least maintain this level with a bit of growth we could see a full year yield of close to 6%.
CapitaGreen is now 80% rented and is likely to reach 100% by year end.
Gearing still remains low at under 30%, however I do expect CCT to buyout the remaining CapitaGreen 60% stakes in either late 2016 or 2017 and their debt headroom will be sufficient.
After 4 straight quarters of strong rental growth, the office market is starting to show weakness with a 0.9% decline. With a huge ......