CapitaMall Trust: UBS upgrades to Buy TP$2.06. Notes it has corrected -8.2% YTD vs -5.9% for SREITs, triggered by concerns on SREIT incumbents being a funding source for the upcoming IPO pipeline; and rich valuations with yields at -1 std dev. House believes funding concerns should be alleviated by deferment of potential listings…
Current correction is a good entry point for exposure to a large cap,well-managed retail portfolio, particularly in an environment of higher inflation expectations. In FY10, CMT achieved positive rental reversion of 6.5% and expect growth to continue at a similar clip. The risk of convertible bond (CB) holders exercising their put options on 2011 DPU impact is a one-off and should not distract from underlying fundamentals. Indicated yield is currently at 4.7%
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment