Capitaland Mall Trust (CMT)

CCT gets boosted on potential merger with CMT

As Singapore gradually reopens from its circuit breaker measures, DBS analyst Derek Tan and its Singapore research team believe that retail REITs are the “preferred” sector due to earlier-than-anticipated mall openings.

SINGAPORE (June 1): As Singapore begins to ease the circuit breaker (CB) measures starting with Phase 1 on June 2, several stocks and real estate investment trusts (REITs) could emerge as beneficiaries.

SINGAPORE (May 29): Following the announcement that retail tenants could potentially resume operations as early as end-June, CapitaLand Mall Trust (CMT) is now an opportunity to accumulate on dips, according to DBS Group Research.

More companies in danger of default given higher leverage, weaker balance sheets and greater risk of liquidity crunch amid the pandemic

SINGAPORE (May 4): The temporary closure of entertainment and non-essential retail outlets, which has hit CapitaLand Mall Trust (CMT) hard, has prompted a mixed view from analysts.

CEO of CMT’s manager Tony Tan says that the group has retained 69%, or $69.6 million, of its taxable income for the quarter to maintain its financial capacity and flexibility.

CGS-CIMB analyst Eing Kar Mei opines that CMT remains well positioned to “sail through the tough times and emerge stronger later”, similar to how it pulled through the 2003 SARS outbreak with minimal impact.

Despite the bleak outlook, CGS-CIMB highlights two retail REITs that are likely to weather the storm.

After the completion of its merger with CapitaLand Commercial Trust in June later this year, CMT is set to become the largest REIT in Singapore and third-largest in Asia Pacific.