CMT

CMT: 2Q13 results in line. Distributable income of $87.7m, +10.2% yoy. DPU of 2.53 cts, +6.3% yoy, which translates to an annualized 2Q13 distribution yield of 5.1%. Gross revenue grew 10.4% to $182.8m, while net property income rose 12.2%. The completed AEI works at JCube, Bigus+ and TheAtrium@Orchard last yr, together with the rental rates achieved from the portfolio’s new and renewed leases were the main drivers to the revenue growth. Tenant sales continued to grow, rising 3.3% yoy in 1H13, and shopper traffic increased 4.8%. AEI commenced at Bugis Junction in 2Q13, to be completed in 3Q14 at an expected cost of $35m. AEI is also on going at IMM Building – Phase 1 is completed to house 51 outlet stores, and mgt will continue to explore the next phase of devt to house more outlet stores. CMT ended 2Q13 with a gearing ratio of 34.9% and average cost of debt of 3.4%. The counter trades at 1.2x P/B.