CapitaLand Mall: Strong Performance, Strategic Growth Initiatives, and Positive Outlook Justify Buy Rating

Analyst Lock Mun Yee from CGS-CIMB reiterated a Buy rating on CapitaLand Mall (CPAMF – Research Report) and keeping the price target at S$2.45.

Lock Mun Yee has given his Buy rating due to a combination of factors that highlight CapitaLand Mall’s strong performance and potential for growth. The company’s 1Q25 revenue and net property income were in line with expectations, reflecting a stable financial position despite a slight year-over-year decline due to asset divestment. However, on a comparable basis, both revenue and net property income showed positive growth, indicating underlying strength in operations.
Additionally, CapitaLand Mall’s retail segment demonstrated robust rental reversions, with a significant increase in tenant sales and shopper traffic, particularly in downtown malls. The company’s strategic asset enhancement initiatives, such as those at the IMM Building and planned for Tampines Mall, are expected to further enhance its portfolio. The office segment also showed positive rental reversions, and management’s guidance suggests continued growth in this area. The company’s diversified portfolio and strong balance sheet, along with clear growth prospects, underpin the positive outlook, making it an attractive investment opportunity.

In another report released today, UOB Kay Hian also maintained a Buy rating on the stock with a S$2.37 price target.