PETALING JAYA: Capitaland Malaysia Trust
(CLMT), which kicked off the first quarter of financial year 2026 (1Q26) on a steady footing, has outlined upcoming asset enhancement initiatives at The Mines in Seri Kembangan, Selangor.
These include upgrading retail spaces along the canal with curated food and beverage offerings, as well as replacing Lotus’ with Jaya Grocer, moves expected to enhance the mall’s vibrancy and overall shopper experience in the medium term, said CGS International (CGSI) Research.
The initiative is targeted for completion by end of this year.
Other takeaways from CLMT’s 1Q26 results briefing recently included its management’s expectation of a manageable increase in electricity cost while guiding for slightly softer, but still resilient, tenant sales and traffic in 2Q26 amid the ongoing Middle East geopolitical disruptions.
“That said, management remains cautious of a potentially weakening outlook, if tensions persist and begin to more meaningfully impact consumer sentiment and electricity costs in the coming quarters,” CGSI Research said in a note to clients.
In 1Q26, CLMT’s core net profit of RM48mil came within CGSI Research’s expectations, accounting for 27% to 28% of its forecasts and Bloomberg consensus estimates.
Operational performance stayed healthy and its management expects resilient occupancy and rental reversion ahead despite macro headwinds.
CGSI Research reiterated its “add” call on the stock, with a higher target price of RM0.81 (from RM0.78) underpinned by a compelling FY26 dividend yield of 8.4% and exposure to high-quality malls.
Meanwhile, UOB Kay Hian (UOBKH) Research, noted that CLMT guided for high single-digit to low-teen rental reversion in 2026.
“We think the upper end of guidance is achievable, as renewals have been concluded for 30.9% of leases due this year as of end-1Q26.
“Average retail rental reversion achieved during the quarter stood at 12.4% (versus 2025: 12.0%), while around half of anchor tenant renewals have also been completed,” UOBKH Research said.
The research house, which has a “buy” on the stock, said CLMT remained its top pick due to its attractive yield.
Sharing some insights, TA Research said CLMT’s refreshed anchor offerings across the portfolio – namely Cold Storage at Sungei Wang Plaza, Aeon at East Coast Mall and Jaya Grocer at The Mines – were stronger concepts than the previous operators.
The new anchors had achieved higher rents than the previous tenants, which contributed positively to financial performance and improved mall positioning.
On industrial and logistics expansion, management said construction of the five forward purchase high-specification assets in Iskandar Malaysia remains on schedule, while leasing efforts are ongoing with several prospect site visits already conducted.
According to TA Research, management remains comfortable with the leasing risk and continues to view industrial and logistics as key growth pillars.
The segment currently makes up 7.9% of assets under management and is expected to rise to about 11.5% upon completion by the first half of financial year 2028.
TA Research has upped the stock’s target price to 81 sen, based on a target yield of 7%, from 6.75% before.
In a filing with Bursa Malaysia on Wednesday, the company said its manager will maintain a disciplined approach in managing cost efficiencies and adopt a proactive stance in portfolio and asset management to mitigate market challenges, amid ongoing disruptions in the global landscape.
“While there are targeted asset management plans, including asset enhancement initiatives to future proof assets, we will adopt a prudent approach on capital expenditure requirements to minimise income disruption.
“On the inorganic front, CLMT maintains a disciplined acquisition approach, focusing on yield-accretive opportunities, with financial discipline.”
