SINGAPORE (April 22): CapitaCommercial Trust (CCT) has reported a 1Q2015 distribution of 2.12 cents a unit, up from 2.04 cents a year earlier.

Revenue rose 6.5% to $68.2 million while net property income increased 6.4% to $54 million.

CCT, which owns 10 commercial properties in Singapore, attributed the increase in its top line to positive rental reversions.

Its monthly average rent inched up 2% during the quarter to $8.78 psf from $8.61 psf as at Dec 31, while its occupancy rate, after including CapitaGreen, was 97%.

CapitaGreen, CCT's latest property and in which it has a 40% stake, is 76.4% filled. It is expected to be fully occupied by end-2015.

Excluding CapitaGreen, CCT's entire portfolio had 100% occupancy in 1Q2015.

CCT's gearing stands at 29.9%. Its average debt maturity profile is 4.1 years.

It has $200 million worth of medium-term notes and a $340-million bank loan that are due for refinancing in 4Q2015.  

Assuming a gearing target of 40%, it can borrow another $1.2 billion.

"This implies it can comfortably purchase the remaining 60% of CapitaGreen without raising equity," Maybank Kim Eng analyst Derrick Heng wrote in a note today.

Still, CCT's current share price has already factored in the acquisition of CapitaGreen, he said. "CCT is the most expensive office REIT."

Heng has a "hold" call and $1.77 price target on the REIT.

Besides CapitaGreen, CCT's other properties are Capital Tower, Six Battery Road, One George Street, Raffles City Singapore, HSBC Building, Bugis Village, Golden Shoe Car Park, Wilkie Edge and Twenty Anson.