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MAYBANK KIM ENG |
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CapitaLand Mall Trust (CT SP) Walking a Tightrope
Keep NEUTRAL and SGD2.03 TP, 1% upside. 1H20 results were broadly in line with market expectations. While shopper traffic pace has picked up post Phase 2 reopening, it remains far from normal and there are also clear signs of pressure on mall occupancy and rents. We expect the retail sector outlook to remain challenging in the mid- to long-term with COVID-19 accelerating structural headwinds. However CapitaLand Mall Trust’s quality assets, strong sponsor backing and proposed merger should mitigate risks.
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Mapletree Industrial Trust (MINT SP) Growing Faster On Data
Results in line, maintain BUY MINT’s 1Q21 DPU was down 7.4% YoY as a further SGD7.1m in tax-exempt income from its JVs was withheld (after the SGD6.6m in 4Q20). We see additional rental relief in 2Q21 given mandated relief from the COVID-19 (temporary measures) Act, which management expects could result in a SGD20.0m total tenant assistance package. Our forecasts are further adjusted for new units from its recent SGD410.0m EFR and the remaining 60% interest in its US data centre deal, which lifts our FY22-23 DPUs by 3-4%. We continue to favour MINT’s positive growth fundamentals and its more resilient portfolio - DPU visibility has been strengthened by its rising hi-tech asset investments and overseas diversification. Our DDMbased TP rises to SGD3.30 (COE: 5.9%, LTG: 2.0%). BUY.
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UOB KAYHIAN |
CGS CIMB |
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CapitaLand Mall Trust (CT SP) 2Q20: The Worst Is Over
Results were affected by rental waivers of S$76.5m granted to tenants affected by the COVID-19 pandemic. However, CMT released S$23.2m, or one-third of the taxable distribution of S$69.6m retained during 1Q20. Shopper traffic has recovered steadily since the transition to Phase 2 of reopening and tenant sales are gaining momentum. Recovery is slowly but surely taking root. Maintain BUY. Target price: S$2.55.
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Mapletree Industrial Trust Taking a prudent stance
■ MINT’s 1QFY3/21 DPU of 2.87 Scts was slightly below expectations, at 23.5% of our FY21F. ■ The weaker Singapore portfolio performance was offset by higher US contribution. ■ We reiterate our Hold rating with a higher DDM-based TP of S$2.87.
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