CapitaLand Mall Trust - OCBC Investment 2020-01-24: A Bigger Future To Look Forward To

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

CapitaLand Mall Trust - A Bigger Future To Look Forward To




4Q19 results within our expectations

  • CAPITALAND MALL TRUST (SGX:C38U) reported its 4Q19 results which met our expectations. Gross revenue and NPI grew 12.7% and 13.1% y-o-y to S$203.4m and S$140.7m, respectively. This was driven largely by contribution from Funan after its re-opening in Jun 2019 (retail and office components).
  • DPU rose 4.0% y-o-y to 3.11 S cents. If we exclude the effects of the taxable income available for distribution which was released in 4Q19 and 4Q18, we estimate that adjusted DPU would have increased by a stronger 6.4% y-o-y. See Capitaland Mall Trust Dividend History.
  • For FY19, CapitaLand Mall Trust’s NPI jumped 13.1% to S$558.2m, while DPU of 11.97 S cents represented growth of 4.1% and formed 100.1% of our forecast.


Operating environment remains subdued, but overall performance considered resilient

  • CapitaLand Mall Trust’s overall portfolio occupancy was firm, having increased 0.4 ppt q-o-q to 99.3%. However, rental reversions moderated to 0.8% for FY19 (9M19: +1.2%). Overall shopper traffic rose 1.4%, but tenants’ sale psf/month inched down by 1.4%.
  • Occupancy cost remained healthy, declining marginally from 18.4% in FY18 to 18.2% in FY19.


Proposed merger with CapitaLand Commercial Trust to create a diversified commercial behemoth REIT






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2020-01-24
SGX Stock Analyst Report BUY MAINTAIN BUY 2.90 UP 2.730



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