Saturday, October 19, 2013

Capitamalls Malaysia Trust - Melawati Mall by its sponsor under construction

Capitamalls Malaysia Trust -
Melawati Mall by its sponsor under construction BUY
Publish date: Fri, 18 Oct 10:26

-  We reaffirm our BUY recommendation on CapitaMalls Malaysia Trust (CMMT), with an unchanged fair value of RM2.15/unit, based on our DCF-based valuation.

-  The group’s sponsor, CapitaMalls Asia Limited (CMA), has just commenced construction of Melawati Mall – a 50:50 joint venture with Sime Darby.

-  The Melawati Mall is located at the north east of Kuala Lumpur city centre – an eight-storey shopping mall with net lettable area of 620,000sf. Construction is expected to complete at end-2016.

-  We are positive on this development as it paves way for a stronger pipeline of assets for injection (in addition to Queensbay Mall) into CMMT.

-  A new mall typically takes at least three years of operation to stabilise. As such, should Melawati Mall be considered for an injection, we opined it could only happen the earliest in 2020.

-  As a recap, CMMT received a letter of intent from Tropicana Corporation Bhd to explore the possibility acquiring the latter’s:- (1) Tropicana City Mall (TCM) – a 4-storey shopping mall; and (2) Tropicana City Office Tower – a 12-storey office building. The group is currently conducting due diligence for the said properties. We believe that TCM fits well within CMMT’s portfolio, which focuses on necessity and day-to-day shopping malls.

-  We maintain our FY13F-FY15F estimates. CMMT’s 3QFY13 results are due for release on 24 October 2013.

-  We remain positive and favourable on CMMT because of its first mover acquisition advantage. We believe CMMT will be the first to embark on an acquisition move compared to Pavilion REIT (HOLD, FV: RM1.65/share) and IGBREIT (HOLD, FV: RM1.38/share), underpinned by:- (i) Queensbay Mall’s position as a ready and yield-accretive asset ; and (ii)TCM – the due diligence exercise hints that a potential acquisition of TCM could be in the making.

Source: AmeSecurities

Publish date: 18/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock