- 1H24 DPU of 6.022 Scts was 1.8% lower YoY, in line with our expectations. Gross revenue/NPI fell 7.2%/8.4% YoY due to the divestment of Changi City Point (CCP) in Oct 23, and ongoing AEI work at Tampines 1 (T1). Excluding these factors, gross revenue/NPI would have risen 2.9%/2.1% YoY.
- 1H24 retail portfolio occupancy was high at 99.9%, with portfolio rental reversions at +7.5%. 2Q24 shopper traffic and tenants’ sales were up 8.1% and 4.3%, respectively. This was an improvement from 1Q24 shopper traffic growth of 3.1% and tenants’ sales decline of 0.7% YoY.
- Maintain ACCUMULATE, with an unchanged DDM TP of S$2.38. We expect 7% positive rental reversion for FY24e, supported by the low occupancy cost of 15.5%. Share price catalysts include more accretive acquisitions and lower-than-expected interest costs. The share trades at an FY24e DPU yield of 5.6%. There is no change in our estimates.
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