Thursday, January 20, 2011

CapitaMall Trust

CapitaMall Trust: 4Q10 results generally in line with Street estimates. Net property income at $101.5m, (+5.7% yoy, flat qoq), benefiting from positive rental renewals (+6.5% yoy) and strong occupancy at 99.3%.
Net income at $63.1m, (-1.1% yoy, -4.5% qoq) mainly due to higher financing cost.
DPU at 2.36cts, (-1.6% yoy, flat qoq). Full yr DPU at 9.24cts (+4.6% yoy), translates to 4.9% yield.
Debt profile remains healthy with gearing of 35.9%...

Mgt expects continued stability and sustainability of the malls’ occupancy rates and rental revenues, driven by increased tourist arrivals and improved consumer confidence, but notes that significant borrowings are due for refinancing in 2011 that could affect its financing costs. Notes the completion of asset enhancement initiatives (AEI) at Raffles City should boost NPI by $1.2m in 2011, while other AEI at JCube, TheAtrium@Orchard are progressing well. prior to results, Street has mix of Buy and Hold ratings, with targets ranging $2-2.39.

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