CapitaMall Trust (CMT) reported its 1Q15 results this morning which was in-line with our expectations. Gross revenue inched up 1.6% YoY to S$167.4m, while DPU grew at a stronger pace of 4.3% to 2.68 S cents. This constituted 24.5% and 24.1% of our FY15 projections, respectively.

During the quarter, CMT managed to obtain positive rental reversions of 6.1%, similar to the whole of FY14. Another positive angle came from the positive growth in shopper traffic and tenants’ sales psf by 4.7% and 2.5% YoY, respectively. As at 31 Mar 2015, CMT’s portfolio occupancy stood at 97.2%, slightly lower than the 98.8% clocked in as at end-2014, which we believe was partly due to AEI works at Bukit Panjang Plaza and Clarke Quay. We will provide more details after speaking with CMT.

We are unlikely to change our estimates, and maintain our HOLD rating and S$2.21 fair value estimate on the stock.

Source: OCBC Research - 21 Apr 2015