Broker's take

CapitaLand Mall Trust | Buy Target price: S$2.10 Jan 25 close: S$1.965 OCBC Investment Research, Jan 25

OPERATIONALLY, Capitaland Mall Trust's (CMT) portfolio exhibited some positive trends, such as the 4.9 per cent and 5.3 per cent increase in shopper traffic and tenants' sales per square foot per month in FY2015, respectively. Occupancy went up from 96.8 per cent (as at end Q3 2015) to 97.6 per cent. Notwithstanding this, the leasing climate remains challenging as rental reversions for FY2015 came in at 3.7 per cent, signifying a continued moderation.

We fine-tune our assumptions and also roll forward our valuations, resulting in a slight increase in our fair value estimate from S$2.09 to S$2.10. Reiterate "buy" on CMT, as we believe the group will remain resilient amid the vagaries of the macroeconomic environment.