SG: CapitaMall Trust - Enhancement works coming along smoothly

CAPITAMALL TRUST 19 Apr 2012

ENHANCEMENT WORKS COMING ALONG SMOOTHLY - 1Q12 distributable income of S$76.6m - Expect reversions to ease ahead - AEIs to drive distribution upside CapitaMall Trust (CMT) reported 1Q12 distributable income of S$76.6m (DPU: 2.30 S-cents) which is 4.6% higher YoY. This is broadly in line with our expectations and make up 23% of our FY12 forecast. Topline came in at S$155.2m, up 0.4% YoY. 1Q performances across CMT's portfolio stayed firm; occupancy improved to 96% with pressure coming mostly from the Atrium due to enhancement works. Management also reported that JCube opened on 2 Apr 12, with 99% of NLA committed, and would contribute to earnings from 2Q12 onwards. We continue to like CMT for its AEI execution and believe that valuations remain attractive at current levels. Maintain BUY with an unchanged S$2.02 fair value estimate.