CapitaLand Mall Trust - RHB Invest 2016-01-25: A Set of Resilient Results

CAPITALAND MALL TRUST C38U.SI

CapitaLand Mall Trust Results Review: A Set of Resilient Results

CapitaLand Mall Trust’s (CT SP, BUY, TP: SGD2.29) 4Q15 results were in-line as it came in 103% of our full year estimates.
Its distributable per unit (DPU) for quarter was up 0.7% YoY for the quarter, while it increased 3.8% YoY for the full year.
Its portfolio proves to be resilient as its occupancy inched up slightly to c.98%, while it registered positive rental reversion of 3.7% for the full year.

We also note that there were no change in valuers’ cap rates from six months ago. The retail scene for CapitaLand Mall Trust (CMT) remained healthy as both its shoppers’ traffic and sales tenants were up c.5% YoY for the year.
We continue to be optimistic on the counter as we admire its resilience within the retail subsector.
In addition, we like CMT’s mall repositioning strategy as it focuses in lifestyle malls, in the midst of an increasing preference of online shopping.

Ivan Looi RHB Invest | http://www.rhbinvest.com.sg/ 2016-01-25

RHB Invest SGX Stock Analyst Report BUY Maintain BUY 2.29 Same 2.29