CapitaMall Trust

CapitaMall Trust: Business appears to be tracking slightly ahead of management’s expectations after operating trends for 1H13 (footfall up 4.8% YoY; tenant sales up 3.3% YoY) have surprised positively compared with outlook at the beginning of the year. Operating trends for 1H13 (footfall up 4.8% YoY; tenant sales up 3.3% YoY) have surprised positively compared with management’s outlook at the beginning of the year. Management is aware that investors are eager for more asset enhancement initiatives (AEI). So far this year, CMT has only announced a $35m AEI for Bugis Junction compared with its average annual AEI expenditures of about $100m since listing. Management is working on several AEI plans, and some are still under discussion with the government authorities. Daiwa has an Outperform with TP of $2.10.