Brokers' take

CapitaLand Mall Trust | Hold Target price: S$2.10 July 23 close: S$2.19 OCBC Investment Research, July 23

CapitaLand Mall Trust's (CMT) 2Q18 results met our expectations. Year-on-year, gross revenue rose 1.6 per cent to S$171.4 million, and net property income was up 2.8 per cent to S$120.8 million. Distribution per unit rose 2.2 per cent to 2.81 Singapore cents from last year though CMT retained a higher amount of its taxable income available for distribution to unitholders. We believe this would be distributed out in the second half this year.

Rental reversions came in at 0.8 per cent for the first half this year, unchanged from the first quarter. However, shopper traffic dipped 2.4 per cent y-o-y, while tenants' sales per square foot also slipped marginally by 0.2 per cent for H1 2018.