CapitaLand Mall Trust - RHB Invest 2016-04-18: 1QFY16 Results Flash Note

CapitaLand Mall Trust - RHB Invest 2016-04-18: 1QFY16 Results Flash Note CAPITALAND MALL TRUST C38U.SI 

CapitaLand Mall Trust (CT SP) - 1QFY16 Results Flash Note 


Highlights 

  • 1QFY16 DPU was up 1.9% YoY to 2.73 cents, meeting 24% of our full year forecasts. 
  • Revenue was up 7.4% YoY mainly due to an additional asset (Bedok Mall). 
  • Achieved higher positive rental reversion of +1.4% (4Q15: +0.4%) 
  • Overall portfolio occupancy remained high at 97.7%. 

Other takeaways 

  • Tenants' sales was up +4.6% YoY, outperforming the retail sales index (Jan: +1.5%, Feb: -9.6%). 
  • Shoppers' traffic was also healthy as it was up 4.9% YoY. 
  • Malls such as Junction 8 and Plaza Singapura booked in high rental reversion at +5.2% and +6.3% respectively. 
  • While the weaker rental reversion were from malls such as The Atrium and JCube (-11% and -8% respectively). 
  • Funan DigitaLife Mall to commence redevelopment in 2H16. 
  • While AEIs in Plaza Singapura, Bukit Panjang Plaza and Tampines Mall are on track. 

Gearing ratio stood at 35.5%, with a healthy interest coverage of 5.2x. 

  • We make no change to our BUY rating, forecast and DDM-derived TP (CoE: 7.1%, Tg: 1.8%) of SGD2.37, FY16 dividend yield of 5.3%. 
  • The first quarter results reiterate our optimistic view that positive rental reversion is here to stay. 
  • We are also encouraged by the strong tenants' sales and shoppers' traffic growth figures, as it will provide CMT a better position to command higher rent rates. 
  • This counter remains as our top pick of the SREITs sector.



Ivan Looi RHB Invest | http://www.rhbinvest.com.sg/ 2016-04-18
RHB Invest SGX Stock Analyst Report BUY Maintain BUY 2.37 Same 2.37


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