We continue to favour near-term organic rental income growth from Mid Valley Megamall and The Gardens Mall due to their prominent locations with wide catchments and high footfall traffic.
Maybank IB Research: Buy with a largely unchanged target price (TP) of RM1.26
Despite the challenging property market environment, S P Setia remains confident of achieving the highest-in-the-industry sales target of RM5 billion for 2018.
Maybank IB Research: Our FY18 to FY20 earnings estimates are unchanged as previously we have not imputed any earnings impact from the aforementioned court case pending its final outcome.
Turnover sales account for about 12 to 15% of IGB REIT’s rental income.
This was largely attributed to the malls’ prominent location with high shopper traffic and wide catchment areas which, in turn, sustained high demand for the malls’ retail space and rental rates.
The cancellation/deferment of major infrastructure projects such as the HSR and KVMRT3 and uncertainties surrounding the East Coast Rail Link were major hits for the construction sector.