Singapore Stock Market News

CapitaMall Trust - Searching for growth

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Publish date: Mon, 22 Apr 2013, 12:30 AM
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CMT's operating metrics picked up in 1Q, with the ongoing completion of AEIs. Management retained a higher sum in 1Q, including S$6.6m which will be released in FY13 for income-smoothening. We think that CMT's current valuations price in the positives.

At 24% of our FY13 forecast, 1Q13 DPU broadly met our and market expectations. We raise FY13 DPU for reduced interest cost and retained earnings but lower FY14-5 for occupancy and rental changes. We keep our DDM-based target price (discount rate: 6.7%) and Underperform call. De-rating catalyst from over-paying for acquisitions.
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