CapitaMalls Malaysia Trust - Private placement

CMMT will be raising RM330m via the private placement of 261.9m new units at issue price of RM1.26. The quantum of equity fund raised exceeded our expectation as it implies that East Coast Mall will be 100% funded by equity which will result in larger than expected EPU dilution. FY11-13 earnings will be cut by between 3.6% and 7.5%. On the flipside, gearing will be lowered which allows more flexibility for

CMMT to pursue further acquisitions. Maintain BUY as we continue to like CMMT for its exposure to retail investment properties which we believe is resilient.


Read more details at here: CapitaMalls

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