CMT

CMT: 1Q results in line; NPI rose 15.5% y/y to $125.1m, DPU grew 7% y/y to 2.46¢ (implied annualized yield of 4.4%). Strong set of results boosted by the completion of six AEIs done in 2012, full-year contribution of JCube, and a positive rental reversion of 6.2%. Overall portfolio occupancy improved to 98.3%, gearing improves slightly by 1.5ppts to 35.2%. In terms of positive catalysts, the AEI for Bugis Junction was announced- scheduled from 2Q13 to 3Q14, mgmt is also exploring phase 2 of IMM's AEI, as the repositioning of the mall as a value-focused mall is tracking well. AEIs for its other assets should not be ruled out as well going forward, with its Funan DigitaLife Mall being a potential asset. CMT trades at P/B of 1.4x, FY13e yield of 4.2%; DB maintains HOLD, increases TP to $2.16; CS maintains OUTPERFORM, increases TP to $2.47; Nomura maintains REDUCE, with TP at $1.98 (due to valuations againsts peers); UOB Kay Hian maintains BUY, with TP at $2.54;