CapitaMall Trust

CapitaMall Trust: 3Q14 result was inline, with DPU at 2.72¢ (+6.3%) taking 9M14 DPU to 7.98¢ (+5.7%). Revenue was up 2.9% to $164.6m, while NPI rose 3.3% to $114.1m. Top-line was led by higher contributions from Bugis Junction, after the completion of its phase 1 and 2 AEIs in 2013, alongside higher rental achieved on new and renewed leases and staggered rental. During the quarter, 417 leases were renewed with a growth of 6.3% over preceding rental rates typically contracted three years ago. Portfolio occupancy remained stable at 98.5%, while gearing ratio was at a comfortable 34.1%, with average cost of debt at 3.6%. Going forward, CMT guides that its strong portfolio of quality shopping malls, coupled with the large and diversified tenant base of the portfolio, will contribute to the stability and sustainability of the malls’ occupancy rates and rental revenues. The group will focus on sustaining DPU growth. At current price, the group trades at 1.07x P/B and an annualized 3Q14DPU yield of 5.6%, versus the retail REITs average of 0.98x P/B and 6.4% forward yield.