The research house cut forecasts by 21.6% and 18.8% for FY21 and FY22 in anticipation that rental reversion will remain in negative territory due to the challenging retail backdrop.
"We continue to see unexciting earnings outlook for CMMT in the near-term due to negative rental reversion and decline in portfolio
"Hence, we maintain Neutral on CMMT," it said.
CMMT's 1Q FY21 core net income of RM7.7mil came in below expectations at 10% of MIDF's and consensus full-year estimates respectively.
"The negative deviation could be attributed to the lower than expected rental income in 1QFY21 as a result of imposition of MCO2.0 and steeper than expected negative rental reversion," said MIDF.
Correspondingly, MIDF revised its target price for CMMT to 60 sen from 63 sne prevously, based on the dividend discount model.