CapitaMalls M'sia Trust - Kenanga Research (29 September 2011)

Kenange Research, one of the most prominent retail broker in Malaysia has written a coverage on CMMT with the rating of OUTPERFORM and the fair value of RM1.52, based on GGM (8.0% required rate of return, 3% terminal growth, FY12E NDPU of 7.7sen).

CMMT is also picked as the top choice as undervalued defensive play in volatile environment.
Reasons why CMMT becomes the top pick for Kenanga Research:
1) largest 'pure play' M-REIT
2) sizable market capitalization of Rm2.0b enables better fund raising opportunities for asset injection.
3) strong branding and parentage via the CapitaMalls Asia which provides good asset injection avenue
4) landmark quality assets
5) portfolio average property yield of 6.8% is similar to current market cap rates of 6%-7%, which could provide a wider range of asset injection oportunities.