CMT

CMT: HSBC initiates CMT at Overweight TP $2.22. Stable income profile supported by non-discretionary spending and high occupancy rates even during down-turn. AEI projects have been key earnings and DPU growth, with tenants willing to pay higher rents and CMT’s portfolio has room for AEI opportunities...

Low cost of funding and asset base of $8.0b allows room for development growth (10% of assets Sg REIT guidelines) and accretive acquisitions. On P/B valuation, CMT is at 1.25x P/B vs historical avg 1.31x. Current DPU yield of 4.8% but HSBC factors asset valuations rising as point for growth.