HSBC initiates CapitaMall Trust (C38U.SG) at Overweight with $2.22 target price; says the REIT’s stable income profile ensures steady payouts while its asset enhancement initiatives will result in continued rental uplift.

Says the “recent correction (is) an opportunity to go long on Singapore’s oldest REIT.”

Bank also starts coverage on CapitaCommercial Trust (C61U.SG) at Underweight with $1.47 target; says the roll-over of high rentals will likely be a drag over the next 2-3 years and says developers provide cleaner exposure to rising office values.

Adds, the recent run-up in unit price reflects improving fundamentals. CMT is flat at $1.94, CCT is down 1.4% at $1.46.