CMMT (5180) : CapitaMalls Malaysia Trust - Sg. Wang affected by MRT construction
Target RM1.46 (Stock Rating: HOLD)
CMMT's 3Q14 core net profit was RM35.7m, bringing its 9M14 core net profit to RM110.6m. This is broadly in line with our expectations as it accounted for 70% of our full-year forecast. We trim our FY14-16 earnings by 1.4-1.5% for housekeeping purposes. Our DDM-based target price is thus lowered slightly to RM1.46. We maintain our Hold call on the stock as we see little in terms of catalysts while we think that investor interest for REITs in general has slumped due to the recent interest rate hike, which reduces the attractiveness of the asset class.
DPU of 2.1 sen for the 3Q14
CMMT announced a DPU of 2.1 sen for the 3Q14, which brings its total YTD DPU to 6.7 sen a share, in line with our estimate of 9 sen for the full year. This translates into a yield of 6.5-6.6% p.a.
3Q14 results review
CMMT's revenue for the 3Q14 was flattish, growing by only 0.7% yoy. The growth mainly came from its East Coast Mall, which saw a full quarter’s contribution from the newly-reconfigured units of Phase 1 of the mall’s asset enhancement initiatives (AEI). Revenues from the mall grew 8.1% yoy, although this was offset by the revenue decline of 8.8% yoy for Sg. Wang, which continued to be affected by the MRT works around the mall. Revenue for CMMT's other malls, i.e. The Mines and Gurney Plaza, grew by 5.9% and 0.5%, respectively. Net property income for the quarter dipped by 2.2% yoy due to the flattish revenues and higher property operating expenses, which rose by 6.5% yoy due to higher utilities expenses. Overall, distributable income for the 3Q14 declined by 5.7% yoy.
East Coast Mall AEI Phase 2 on track
CMMT is currently in the process of further improving its East Coast Mall. The mall's AEI is currently in Phase 2, which involves the extension of the alfresco area and reconfiguration of the ground, first and second floors, i.e. a total of 26k sq ft of existing net lettable area (NLA).
Source: CIMB Daybreak - 23 October 2014
Target RM1.46 (Stock Rating: HOLD)
CMMT's 3Q14 core net profit was RM35.7m, bringing its 9M14 core net profit to RM110.6m. This is broadly in line with our expectations as it accounted for 70% of our full-year forecast. We trim our FY14-16 earnings by 1.4-1.5% for housekeeping purposes. Our DDM-based target price is thus lowered slightly to RM1.46. We maintain our Hold call on the stock as we see little in terms of catalysts while we think that investor interest for REITs in general has slumped due to the recent interest rate hike, which reduces the attractiveness of the asset class.
DPU of 2.1 sen for the 3Q14
CMMT announced a DPU of 2.1 sen for the 3Q14, which brings its total YTD DPU to 6.7 sen a share, in line with our estimate of 9 sen for the full year. This translates into a yield of 6.5-6.6% p.a.
3Q14 results review
CMMT's revenue for the 3Q14 was flattish, growing by only 0.7% yoy. The growth mainly came from its East Coast Mall, which saw a full quarter’s contribution from the newly-reconfigured units of Phase 1 of the mall’s asset enhancement initiatives (AEI). Revenues from the mall grew 8.1% yoy, although this was offset by the revenue decline of 8.8% yoy for Sg. Wang, which continued to be affected by the MRT works around the mall. Revenue for CMMT's other malls, i.e. The Mines and Gurney Plaza, grew by 5.9% and 0.5%, respectively. Net property income for the quarter dipped by 2.2% yoy due to the flattish revenues and higher property operating expenses, which rose by 6.5% yoy due to higher utilities expenses. Overall, distributable income for the 3Q14 declined by 5.7% yoy.
East Coast Mall AEI Phase 2 on track
CMMT is currently in the process of further improving its East Coast Mall. The mall's AEI is currently in Phase 2, which involves the extension of the alfresco area and reconfiguration of the ground, first and second floors, i.e. a total of 26k sq ft of existing net lettable area (NLA).
Source: CIMB Daybreak - 23 October 2014
