CapitaLand Mall Trust - OCBC Investment 2019-10-22: Robust Growth Delivered

CAPITALAND MALL TRUST (SGX:C38U) | SGinvestors.io CAPITALAND MALL TRUST (SGX:C38U)

CapitaLand Mall Trust - Robust Growth Delivered




CMT's 3Q19 results met our expectations

  • CAPITALAND MALL TRUST (SGX:C38U) reported its 3Q19 results which were in-line with our expectations. Gross revenue and NPI rose 17.9% and 17.6% y-o-y to S$201.1m and S$144.2m, respectively. DPU grew at a healthy clip of 4.8% y-o-y to 3.06 S cents. See Capitaland Mall Trust Announcements.
  • If we take into account the S$1.5m and S$4.0m of taxable income available for distribution which was released in 3Q19 and 3Q18, respectively, we estimate that 3Q19 adjusted DPU would have increased at a stronger magnitude of 7.6% y-o-y. 
  • For 9M19, CapitaLand Mall Trust’s gross revenue and NPI increased 12.8% and 13.1% to S$583.4m and S$417.5m, respectively.
  • DPU of 8.86 S cents represented growth of 4.1% and constituted 74.1% of our FY19 forecast. See Capitaland Mall Trust Dividend History.
  • CapitaLand Mall Trust still has a balance of ~S$7.7m of retained taxable income available for distribution which we believe will be released in 4Q19.


Maiden positive NPI contribution from Funan

  • Funan contributed 9M19 NPI of S$8.3m (retail and office components), versus -S$2.4m in 1H19 (due to pre-opening expenses), which implies maiden positive NPI contribution of S$10.7m in 3Q19.
  • Committed occupancy for Funan stood at 98.7% (+2.6 ppt q-o-q), while several other malls also saw an increase in occupancy rates, such that overall portfolio occupancy improved 0.6 ppt q-o-q to 98.9%. Rental reversions came in at +1.2% for 9M19, which was a moderation from 1H19 (+1.8%).
  • Shopper traffic growth also slowed (+1.3% y-o-y for 9M19 versus +1.9% for 1H19), while tenants’ sales slipped 1.3% y-o-y for 9M19 as compared to -0.9% for 1H19. While this was in-line with the soft retail sales index in Singapore, we believe CapitaLand Mall Trust’s performance has been more resilient than the overall market.


Lot One Shoppers’ Mall to undergo a rejuvenation exercise






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2019-10-22
SGX Stock Analyst Report HOLD MAINTAIN HOLD 2.73 UP 2.510



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