
CapitaMalls Asia's 2Q13F operating profit predicted to hit $106m
Here are its key growth drivers.
According to Nomura, excluding revaluation and portfolio gains as well as other non-operating items, 2Q13F core operating profit (EBIT + associates) is estimated at SGD106mn, vs. SGD84mn in 1Q13 and SGD54mn in 2Q12, and 1H13 core operating profit (EBIT + associates) of SGD190mn met 48% of full-year forecast.
CMA’s core earnings recovery therefore appears on track to meet Nomura's expectations.
"It appears the key drivers for CAPL’s ROE expansion in FY13-15F, such as the growth in core operating profit, potential revaluation gains (Bedok Mall, Westgate) and potential asset divestments (The Star Vista, Bedok Mall), are coming from CMA – i.e. with CMA, investors get most of the growth without the potential downside risk from the residential market in Singapore (or China)," Nomura said.