CapitaLand Mall Trust (CMT) reported its 4Q15 results this morning which met our expectations. Gross revenue grew 9.2% YoY to S$180.4m. This was driven largely by the initial contribution of Bedok Mall, which was acquired on 1 Oct 2015, but partially offset by a dip in gross revenue from JCube due to lower occupancy. DPU for 4Q15 inched up 0.7% YoY to 2.88 S cents.

For FY15, CMT’s gross revenue rose 1.5% to S$669.0m, while DPU was up 3.8% to 11.25 S cents. These constituted 101.7% and 101.5% of our full-year projections, respectively.

Operationally, CMT's shopper traffic and tenants’ sales psf per month rose 4.9% and 5.3% in FY15, respectively, while rental reversions for the year came in at 3.7%, signifying a continued moderation (9M15: 4.1%).

Portfolio occupancy increased from 96.8% (as at end 3Q15) to 97.6%. We will provide more details after the analyst briefing later. Maintain BUY and S$2.09 fair value estimate on CMT.

Source: OCBC Research - 22 Jan 2016