CMT

CMT: Credit Suisse downgrades to Neutral, citing stretched valuations post recent rally. FY14 DPU of $0.1084 was broadly in line, driven by contribution from Westgate and stronger performances in Plaza Sing, Atrium and Bugis Junction, partially offset by lower occupancy at IMM and JCube. Management is cautious on outlook of rent reversions given challenging operating environment. Meanwhile, occupancy costs increased 180bp y/y to 17.6%. However, there is potential for interest savings from refinancing the remaining $391m MTN due 2014. The house likes the resilient “necessity” shopping positioning of CMT’s malls but prefers better entry points due to limited upside post the recent rally, TP at $2.37 ( ~5% upside).