CapitaLand Investment - DBS Research 2022-01-03: Born To Fly

CapitaLand Investment - Born To Fly

  • We re-initiate coverage of CapitaLand Investment (CLI, SGX:9CI) with a target price of S$4.00, pegged to its sum of the parts valuation. Catalysts that we see emerging are
    1. launch of new fund products and REIT acquisitions, with an aim to grow funds under management (FUM) to S$100 billion by 2024, up 19% from 2021 and
    2. rebound in operational performance from its lodging business.
  • These are expected to drive CapitaLand Investment's 3-year net profit CAGR by 12% during FY21-24F.
  • CapitaLand Investment is an asset and capital efficient company with a scalable fee-related earnings (“FRE”) and Fund AUM (“FUM”) platform for growth. CapitaLand Investment’s private funds and REITs complement each other in terms of acquisition strategy. With diverse real estate strategies ranging from opportunistic, value-add to core investments, we see CapitaLand Investment leveraging on opportunities during market upcycles and downcycles. Its REITs and private funds can be active across all real estate cycles.
  • Lodging business roaring back to profitability. Ascott Limited’s global footprint is well placed to leverage on multi-year recovery of the hospitality sector in coming years. On top of robust growth in its operational footprint to 160,000 units by 2023, we see a turnaround in cashflows, as reopening of international borders is expected to drive the lodging business back to profitability.

Above is the excerpt from report by DBS Group Research.
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Derek TAN DBS Group Research | Rachel TAN DBS Research | 2022-01-03
SGX Stock Analyst Report BUY INITIATE BUY 4.00 SAME 4.00

Check out the most recent target prices at CapitaLand Investment Target Prices. Listing of analyst research reports at CapitaLand Investment Analyst Report.

Relevant links:
CapitaLand Investment Share Price History,
CapitaLand Investment Announcements,
CapitaLand Investment Dividends & Corp Actions,
CapitaLand Investment News Articles


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