Nomura reduces Captialand Fair Value

Nomura lowers target price for CapitaLand to S$5.13 from S$5.32 to reflect lower valuations for subsidiaries; keeps Reduce call. Says, developer, like peers, finds market conditions this year tougher than expected, with weakness in pre-sale market in Singapore affecting planned launches of residential projects. Expects earnings growth to slow in FY09-10 as weaker-than-expected selling prices for key en bloc developments shrink margins. On developer's retail business, house expects increased risks for achievable rents, capitalization rates for its suburban malls, as new supply enters market.