DBS Vickers keeps CapitaMalls Asia (JS8.SG) at Buy, nudges target up to $2.59 vs $2.58; says 3Q results within expectations.

Says CMA benefiting from rising retail sales, consumption patterns, underlying portfolio maintained robust performance with overall YTD net property income +27% on year, “backed by better shopper footfalls, up 3.2%-55% while gross turnover improved around 6.0%-118% as average occupancy rose above 90%.” 

 

Notes, “pipeline remains strong with another 25 malls to be constructed,” acquisition momentum to pick up with objective to deploy $800 million-$1 billion of capital in 2H10. “With gross cash of US$1.4 billion ($1.81 billion), the group is well positioned to tap new opportunities across the region”. Says current valuation 1.45X P/BV undemanding, "we continue to like CMA for its real estate niche in the Asian consumption growth story."

 

Shares flat at $2.14.