CMT

CMT: Stable 2Q results, generally in line, DPU at 2.4c. 2Q Rev $159.6m +12.0%yoy, +3.6%qoq. Net profit was $63.3m +6.6%yoy -16.7%qoq. DPU was for 2Q was 2.4c +3.1%yoy, +3.0%qoq. The fall in net profit was due to fall in contributions of associates namely the 3-mth lagged CRCT results. Rental rev increases from prev quarter came from acq of Illuma on 1 Apr (+$3.9m in rev) and higher rents from other malls (+$1.7m). AEI works on JCube remain on track with 80% leases secured. Co has positive view of retail environment supported by adv estimates by Ministry of Trade and Industry of btwn 5.0-7.0% in 2011.

Of note co further repurchased and cancelled $100m of its convertible bonds (CBs) on 4 Apr. On 1 Jul, $106m of CBs and 4 Jul $87.8m of CBs were also repurchased, which will be reflect in nxt quarter’s results. Co has current gearing ratio of 0.4x (debt to property assets).

At current 1H2011 DPU of 4.8c, has an annualized yield 4.8%. Other retail REITs, FCT has indicated 2011 yield of 5.3%, Starhill Global at 6.2% and Suntec at 6.1%.