CMT

CMT: FY12 results, broadly inline. Achieved distributable income of $316.9m, +5.1% yoy. DPU was 9.46cts, +1.0%, implying a yield of 4.4%. The improved performance in FY12 was mainly due to contributions from JCube which re-opened in Apr ’12, Buis+ which was acquired in Apr ’11 and saw completion of asset enhancement works in Jul ’12, as well as rental increases from new leases and renewal of existing leases. For 4Q12, Net property income was $112.9m, +14.3% yoy. Distributable income was $79.8m, +5.7% yoy. In connection with a private placement that was completed 30 Nov ’12, an advanced distribution of 1.55cts for the period 1 Oct – 29 Nov ’12 will be paid on 28 Jan ’13. Unitholders can also expect to receive a distribution of 0.81 cts for the period 30 Nov – 31 Dec ’12. Effectively, 4Q12 DPU adds up to 2.35 cts. Mgt notes CMT’s completed AEI works at JCube, Bugis+ and The Atrium@Orchard are starting to bear fruit and is expected to boost rental income in 2013. While mgt expects economic outlook for Spore to remain subdued in 2013, believes its portfolio of well-located necessity shopping malls would position it well in these times. CMT will focus on its repositioning exercise for IMM Building and leasing activities for Westgate. CMT has a gearing ratio of 36.7%, avg cost of debt of 3.3% and interest coverage at 3.2x.