CapitaMall Trust (CMT) reported its 4Q14 results this morning which was in-line with our expectations. Gross revenue increased 2.2% YoY to S$165.2m, while DPU grew at a stronger pace of 5.1% to 2.86 S cents. For FY14, gross revenue came in at S$658.9m (+3.3%) and matched our forecast. DPU grew 5.6% to 10.84 S cents and formed 98.6% of our estimate. CMT recorded rental reversions of 6.1% for its portfolio in FY14.

Encouragingly, the softness in its tenants’ sales continued to moderate, as sales psf pm declined 1.9% in FY14, versus a 3.0% dip for 9M14. We will provide more details after the analyst briefing. As CMT’s share price has performed strongly YTD, we place our BUY rating and S$2.20 fair value estimate under review.

Source: OCBC Research - 25 Jan 2015