CapitaLand Mall’s Strategic Growth and Robust Performance Justify Buy Rating

Lock Mun Yee, an analyst from CGS-CIMB, reiterated the Buy rating on CapitaLand Mall (CPAMF – Research Report). The associated price target is S$2.45.

Lock Mun Yee has given his Buy rating due to a combination of factors that highlight CapitaLand Mall’s robust financial performance and strategic growth prospects. The company’s FY24 results demonstrated a solid performance with year-on-year increases in revenue and net property income, driven by positive rental reversions and improved portfolio occupancy. The acquisition of a 50% stake in ION Orchard contributed significantly to the company’s portfolio valuation, which increased by 6.2%, further enhancing the potential for future growth.
Moreover, the company’s strategic divestments and focus on debt reduction have resulted in a healthier balance sheet, with aggregate leverage dipping to 38.5%. Management’s guidance to maintain debt costs below 4.0% for FY25F underscores a prudent financial strategy. The overall portfolio’s strong committed occupancy and positive outlook for office rental reversions further support the company’s growth trajectory. These factors collectively justify the Buy rating, as they indicate a strong position for CapitaLand Mall to capitalize on future opportunities.

In another report released today, DBS also maintained a Buy rating on the stock with a S$2.30 price target.