CapitaLand Integrated Commercial Trust - CGS-CIMB Research 2022-07-29: Improving Outlook

CapitaLand Integrated Commercial Trust - Improving Outlook

CAPITALAND INTEGRATED COMM TR (SGX:C38U) | SGinvestors.ioCAPITALAND INTEGRATED COMM TR (SGX:C38U)
  • CapitaLand Integrated Commercial Trust (SGX:C38U) reported 1H22 revenue and net property income (NPI) of S$687.6m and S$501.6m, up 6.5% and 6.2% y-o-y respectively, due to contributions from CapitaSky and 3 Australian assets as well as better performance of its existing portfolio, partly offset by divestment of JCube and higher operating expenses.
  • CapitaLand Integrated Commercial Trust's NPI margin dipped slightly from 73.1% in 1H21 to 72.9% in 1H22. Distribution income of S$347.3m translates to DPU of S$0.0522, +0.8% y-o-y and flat h-o-h.
  • Gearing rose slightly to 40.6% at end-1H22 with 81% of total debt hedged to fixed rates. Management guided that for every 1% pt change in average funding cost, CapitaLand Integrated Commercial Trust's DPU could be impacted by 0.28 cents.
  • CapitaLand Integrated Commercial Trust reported 1H22 retail revenue and NPI of S$276m and S$197m, +3.1% abd 4.5% y-o-y respectively. Retail occupancy stood at 96.5% at end-1H22. Tenant sales improved 15.9% y-o-y (+26.4% for downtown malls) while shopper traffic rose 12.5% y-o-y. Meanwhile, retail rental reversion averaged -0.5% in 1H22, an improvement over the -1.3% reported in 1Q. That said, excluding Raffles City Singapore, which is undergoing rejuvenation of tenant mix, average rent reversion would have been +1.1% in 1H22.
  • Office revenue grew 11.9% y-o-y to S$214.9m in 1H22, while NPI increased 10.8% y-o-y to S$163m with the acquisition of CapitaSky in Apr 22 and purchase of 66 Goulburn St and 100 Arthur St in Australia in Mar 2022 and 101 Miller in Jun. 21 Collyer Quay also commenced contributions during this period. Occupancy improved to 91.9% in 1H22. Rental reversion was +8.5% y-o-y, with a 91.4% retention rate. CapitaSpring’s take-up rate improved to 99.5% while Raffles City Singapore office saw take-up rising to 99.4% in 1H22. We expect the full impact of contributions from the new properties to be felt from 2Q22F onwards.
  • We keep our FY22-24F DPU estimates for CapitaLand Integrated Commercial Trust unchanged and maintain our DDM-based target price of S$2.57.




Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.




LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-07-29
SGX Stock Analyst Report ADD MAINTAIN ADD 2.570 SAME 2.570




Previous report by CGS-CIMB:
2022-03-25 CapitaLand Integrated Commercial Trust - Buying A 70% Stake In 79 Robinson Road

Target prices by 2 other brokers at CapitaLand Integrated Commercial Trust Target Prices.
Listing of broker reports at CapitaLand Integrated Commercial Trust Analyst Report.

Relevant links:
CapitaLand Integrated Commercial Trust Share Price History,
CapitaLand Integrated Commercial Trust Announcements,
CapitaLand Integrated Commercial Trust Dividends & Corp Actions,
CapitaLand Integrated Commercial Trust News Articles





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