“Expectations for CMT are low, as investors are barely anticipating any rental reversion growth, in our view. The recent uptick in retail sales, if sustained, limits downside to rental reversions, and may trigger a share price re-rating. The utilisation of its balance sheet to fund further acquisitions also offers an upside surprise to our estimates,” explains the analyst.
SINGAPORE (Dec 7): DBS Vickers Securities reiterates its “buy” call on CapitaLand Mall Trust (CMT) with an adjusted target price of $2.44, which now reflects a higher proportion of equity used to finance its acquisition of Westgate mall.
In a Thursday report, analyst Carmen Tay say she expects a re-rating of CMT’s unit price as its earnings growth returns to an upward trajectory of about 3-4% per annum, versus S-REITs’ average of about 1-2%.
