CRCT

CRCT: Stan Chart reiterates Outperform on CapitaRetail China Trust (TP $1.82), now trades at 38% discount to RNAV. Rental revenue for CapitaMall Grand Canyon could grow 26% over 2014-16 on proactive tenant remixing and positive rental reversions. The mall was acquired for NPI yield on cost of 3.5%, but is expected to rise to 5.5% by 2H2014 and 6.7% by 2H2016. Other malls in Beijing (Xizhimen and Saihan) showed strong q/q NPI growth of 8-10%, also on positive rental reversions and strong tenant sales. Mall under refurbishment Minzhongleyuan was re-opened two months earlier with high rental reversion (24.9% in 2Q14) and high occupancy (approx. 90%).