Summary: CapitaMall Trust (CMT) reported 4Q13 NPI of S$125.5m and distributable income of S$94.4m, up 11.1% and 18.3% YoY respectively. The strong performance was bolstered by The Atrium@Orchard and IMM Building post asset enhancement works and higher secured rentals on lease renewals. DPU came in at 2.72 S cents (+15.3% YoY), bringing the FY13 DPU to 10.27 S cents. This is largely in line with both ours and consensus full-year DPU forecast of 10.1 S cents. As at 31 Dec 2013, portfolio occupancy remained relatively stable at 98.5% (3Q: 99.5%). Positive rental reversion averaging 6.3% was also achieved for the 629 new leases/renewals in FY13. We will be attending the analyst briefing later in the morning to get more details on its outlook. For now, we maintain BUY on CMT but place our S$2.35 fair value under review.

Source: OCBC Research - 22 Jan 2014