Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: UOB KayHian
It notes, the buy, at an NPI yield of 3.8%, does not look yield accretive to the portfolio NPI yield of 5.6% or the trading yield of 5.3%.
Company Name: CAPITAMALL TRUST
Research House: UOB KayHian
CapitaMall Trust (C38U.SG) is flat at $1.78, in a muted reaction to the shopping mall REIT’s purchase of Iluma in Singapore’s Bugis area for $295 million.
UOB KayHian, which has a Sell rating and $1.85 target, says “we don’t see the acquisition as contributing significantly to CMT’s current portfolio as the mall is a secondary mall in the Bugis area, although CMT may be able to realize better synergies in the long term.”
UOB KayHian, which has a Sell rating and $1.85 target, says “we don’t see the acquisition as contributing significantly to CMT’s current portfolio as the mall is a secondary mall in the Bugis area, although CMT may be able to realize better synergies in the long term.”
It notes, the buy, at an NPI yield of 3.8%, does not look yield accretive to the portfolio NPI yield of 5.6% or the trading yield of 5.3%.
However, it says “there’s significant potential for asset enhancement as the property is 84% occupied and there are potential synergies to link the mall with Bugis Junction (Iluma is connected by a 2nd-storey bridge to Bugis Junction, owned by CMT), creating a seamless shopping experience with a total NLA of over 600,000 sf, equivalent to Ion Orchard.”
Orderbook suggests a $1.75-$1.84 near-term range for the stock.
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