Category: CMT

 

CMT – Lim & Tan

Parentage

July 17, 2007 CMT No Comments »

Singapore Reits – UBS

Global Equity Research PT adjustments following rise in spot risk free rate

Event – PT revisions downwards by average -1.8%
We have moved the spot risk free in our DCF model to 2.9% for yr0-10, from 2.7% following recent interest movements. Our terminal rate (yr10+) is unchanged at 3.6%.

Impact – Downgrade CCT and SUN

This move lifts our price targets downwards by -1.8% on average. Due to recent price movements we have moved CCT from a Neutral 2 to a Reduce 2 and SUN from a Buy 1 to a Neutral 1. We believe the office rental uptrend has been largely priced in and it is increasingly difficult for these REITs to make yield-accretive acquisitions domestically.

Action – Overweight Industrial & Retail

Our key picks among the SREITs are 1. Mapletree (acquisition upside potential not priced in) 2. Cambridge (re-rating potential & possible acquisition upside) =3. Domestic retail – FCT and CMT (organic growth likely to continue to exceed expectations). We maintain a Buy 2 on KREIT due to the strong expected rental reversions which we believe have not been priced in.

Valuation

The sector continues to offer relatively attractive pricing currently, with a 4.3% CY’07 yield, 6.0% ’07-12 DPU growth, and 7.5% upside to our price target. We recognise the expected S$5bn+ of capital raising in 2007 ($945m YTD) is likely to provide a moderate headwind.
June 5, 2007 CCT, CMT, ESR, FCT, KepREIT, MLT, Suntec No Comments »

CMT – GS

CAPITAMALL remains a BUY

– CMT said on Thursday that it has earlier received planning permission from the Urban Redevelopment Authority for Funan DigitaLife Mall to erect a 9 storey commercial building utilizing GFA of approximately 385,000 sf. CMT’s manager is, however, appealing to URA on an alternative waiver scheme so as to achieve a more efficient floor plate for the proposed development of an office block and to minimize disruptions to the retail tenants. We continue to have a positive bias on the stock, as CMT has shown a remarkable track record in generating incremental earnings growth from its portfolio of assets.


– Analysis . The addition of space at Funan has always been a possibility as CMT had during its IPO in 2002 said that this property, which was part of its initial portfolio, had unutilized GFA. We think given the existing shortage of CBD office space in Singapore, it is timely if CMT quickly brings on additional office space at Funan, which is located within the CBD. Assuming building efficiency of around 80%, we estimate the addition of space can generate some S$30 mn in revenue a year, almost 7% of our FY2007 forecasted revenue, on rentals of approximately S$8 psfpm. We do not see this addition of office space at Funan diluting the predominantly retail mall flavor of CMT. Also, we think this trust has enough debt capacity to fund the addition of new space even though the impending addition of 3 malls should raise the gearing for CMT from 37% to 41%.

– Implications. We await the details on the costs, timing and plans for the new office space at Funan and as such we put our earnings estimates and target price under review. We continue to like CMT’s top quality management plus its attractive organic and acquisition growth prospects. On current valuations, CMT trades at a 3.3% dividend yield. Risks include the inability to continue executing on growth via accretive acquisitions and an interest rate spike.


May 5, 2007 CMT No Comments »

CMT – Lim and Tan

Every Sq Ft Counts

May 4, 2007 CMT Comments Off on CMT – Lim and Tan

CMT – SGX
Funan DigitaLife Mall Receives Provisional Permission to Erect a Nine-Storey Commercial Building Utilising Additional Gross Floor Area of Approximately 385,000 Square Feet

Singapore, 3 May 2007 – We refer to the article “URA okays 1.3m sq ft office space” published in the Business Times on 28 April 2007. In CapitaMall Trust’s (CMT) Initial Public Offering (IPO) Circular dated 28 June 2002, it was stated that Funan DigitaLife Mall (previously known as Funan The IT Mall) had only utilised 3.861 of its allowable Gross Plot Ratio of 7.0 and has an unutilised Gross Floor Area (GFA) of about 385,000 square feet.

In order to maximise the unutilised GFA at Funan DigitaLife Mall, CapitaMall Trust Management Limited (CMTML), as manager of CMT, has submitted a planning application to the Urban Redevelopment Authority (URA) and has earlier received URA’s provisional permission to erect a nine storey commercial building and for additions and alterations to the existing Funan Digitalife Mall.

However, CMTML is appealing to URA on an alternative waiver scheme so as to achieve a more efficient floor plate for the proposed development of an office block and to minimise disruptions to the retail tenants. Further details will be provided in due course upon finalisation of details with the URA.

May 3, 2007 CMT Comments Off on CMT – SGX