OCBC raises CapitaMall Trust to Buy from Hold

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: OCBC

OCBC Investment Research raises CapitaMall Trust (C38U.SG) to Buy from Hold and raises its fair value estimate to $1.98 from $1.82.

This follows the creation of a $2.5 billion retail bond program and a $200 million two-year retail bond offer. 

“On the back of the successful offering from its sponsor CapitaMalls Asia (JS8.SG), we view this move positively as it helps to lower the average cost-of-debt for CMT,” the house says; it has lowered average cost-of-debt estimates for REIT by 15 bps “in anticipation of the successful take-up of the retail bonds.” 

The stock’s unit price is outperforming the broader market, down 0.5% at $1.81.