Company Coverage
CapitaLand Malaysia Trust (CLMT MK): 2Q26: Slightly Ahead; Attractive Dividend Yield Of 8-9%
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM0.61
RM0.80
31.1%
RM0.78
Analyst
Highlights
- 2Q26 results were slightly ahead of expectations, with a DPU of 1.29 sen declared, due to lower-than-expected impact of electricity costs.
- Rental reversion came in at 11.6% in 1H26, in line with the earlier guidance of “high single-digit to low-teens” reversion in 2026.
Maintain BUY with a higher target price of RM0.80. CLMT remains our top pick due to its attractive yield of 8-9%
Analysis
- Slightly ahead. CapitaLand Malaysia Trust (CLMT) reported 2Q26 revenue of RM102m (-3.8% qoq, +8.2% yoy) and core net profit of RM45m (-6.1% qoq, +23.2% yoy). This brings 1H26 core net profit to RM93.2m, accounting for 54% of both our and consensus full-year estimates, slightly ahead of our expectation due to the lower-than-expected impact of electricity costs. Average cost of debt declined to 4.21% p.a. for 1H26 (vs 4.24% in 1Q26).
- A dividend of 1.29 sen was declared for 2Q26 (+9.3% yoy), which implies an annualised yield of 8.7%.
Highlights
- 2Q26 results were slightly ahead of expectations, with a DPU of 1.29 sen declared, due to lower-than-expected impact of electricity costs.
- Rental reversion came in at 11.6% in 1H26, in line with the earlier guidance of “high single-digit to low-teens” reversion in 2026.
Maintain BUY with a higher target price of RM0.80. CLMT remains our top pick due to its attractive yield of 8-9%
Analysis
- Slightly ahead. CapitaLand Malaysia Trust (CLMT) reported 2Q26 revenue of RM102m (-3.8% qoq, +8.2% yoy) and core net profit of RM45m (-6.1% qoq, +23.2% yoy). This brings 1H26 core net profit to RM93.2m, accounting for 54% of both our and consensus full-year estimates, slightly ahead of our expectation due to the lower-than-expected impact of electricity costs. Average cost of debt declined to 4.21% p.a. for 1H26 (vs 4.24% in 1Q26).
- A dividend of 1.29 sen was declared for 2Q26 (+9.3% yoy), which implies an annualised yield of 8.7%.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM0.61
RM0.80
31.1%
RM0.78
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
