SINGAPORE (July 7): CapitaLand Mall Trust (CMT) offers “better value” than Frasers Centrepoint Trust (FCT), according to DBS Group Research.

This is because CMT now trades at a 0.2% mean yield discount to FCT based on five-year historical figures, it says.

The yield differential has widened to above 0.7% or one standard deviation levels since June, it adds.

“We think that the present yield differential gap is too wide to be ignored and puts CMT at a better value at its current trading price as compared to FCT,” DBS analyst Derek Tan and the research team write in a note dated July 7.

The return of workers to offices to the Central Business District should also bode well for CMT’s central malls.

DBS notes that Raffles City Shopping Centre and Bugis Junction will likely benefit from a bigger weekday and lunch crowd.

The brokerage has maintained its “buy” call for CMT with a higher target price of $2.40 from $2.15 previously.

As at 11.46 am, CMT was up 2 cents or 0.9% at $2.11 with 6.2 million units changed hands.