CapitaMall Trust (CMT) released its 2Q14 results this morning. NPI rose by 4.4% YoY to S$114.0m, while distributable income increased 6.5% to S$93.4m. Similarly, DPU for the quarter grew 6.3% to 2.69 S cents. Together with 1Q distribution, 1H14 DPU came in at 5.26 S cents, meeting 47.9% of our full-year DPU forecast.

Management disclosed that the ongoing asset enhancement works at Bugis Junction, Tampines Mall and IMM Building are progressing well. In the upcoming 3Q, CMT plans to commence refurbishment works at Bukit Panjang Plaza. We will be tuning in to CMT’s results webcast later in the morning.

For now, we maintain BUY on CMT, but place our S$2.20 fair value under review. (Kevin Tan)

Source: OCBC Research - 23 Jul 2014