JPMorgan raises CapitaRetail China Trust to $1.30

Stock Name: CapitaRChina
Company Name: CAPITARETAIL CHINA TRUST

Research House: JP Morgan Chase

Price Call: HOLD

Target Price: 1.30

JPMorgan has raised its target price on Singapore’s CapitaRetail China Trust (CRCT) (CRCT.SI), which owns shopping malls in China, to $1.30 from$1.25 and maintained its neutral rating.

JPMorgan said the key near-term share price catalyst would be the large-scale improvement or upgrading of CRCT’s existing portfolio.

CRCT reported second-quarter distribution per unit of $0.0215 per unit at an annualised yield of 7.1%, slightly above consensus but below JPMorgan estimates, the brokerage said.

Rental reversions for the firm’s overall portfolio came in%at a historical high of 17% against preceding rents, with%the two biggest assets — CapitaMall Wangjing and Xizhimen — moving towards stabilisation, JPMorgan said.

It added that contributions from the newly acquired Minzhon Leyuan mall in China could help to sustain the growth in net property income.

At 11:29 a.m., CCRT was up 0.8% at $1.24 on a volume of 109,000 units. It has risen around 3% so far this year.