CapitaLand Mall Trust: Strong Performance and Strategic Growth Lead to Buy Recommendation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2024
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Source: Business Insider
- Analyst Ratings: UOB Kay Hian analyst Jonathan Koh maintains a Buy rating on CapitaLand Mall (CPAMF) with a price target of S$2.34, citing positive indicators from recent financial performance and strategic positioning.
- Financial Performance: CapitaLand Mall Trust shows strong rental growth in retail and office spaces, with positive rental reversions at 7.2% and 14.1%, respectively, in Q1 2024. The trust also has high retention rates in both sectors.
- Resilient Growth: The trust exhibits resilient growth in Singapore, with an increase in gross revenue and net property income by 2.6% and 6.3% year-on-year, attributed to savings from lower utility expenses.
- Outlook: Jonathan Koh maintains a Buy recommendation on the stock, confident in the Trust's distribution yield and overall financial health. CGS-CIMB also reiterates a Buy rating with a S$2.18 price target.
- Company Description: CapitaLand Mall Trust is the first and largest real estate investment trust listed on the Singapore Exchange, with 15 properties in suburban and downtown Singapore, totaling about 5.4 million square feet of net leasable area.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
