CapitaLand Integrated Commercial Trust - DBS Research 2022-08-12: The One & Only Mercatus

CapitaLand Integrated Commercial Trust - The One & Only Mercatus

Published:
CAPITALAND INTEGRATED COMM TR (SGX:C38U) | SGinvestors.ioCAPITALAND INTEGRATED COMM TR (SGX:C38U)
  • The sale of Mercatus’ S$4.1bn suburban retail portfolio has created a buzz in the market especially when a rare portfolio of gems is up for sale. Given the significant operational scale and lack of availability of suburban assets for sale in Singapore, it has garnered strong interests from investors, especially retail landlords / operators.
  • - Read this at SGinvestors.io -
  • We believe CapitaLand Integrated Commercial Trust is probably the strongest contender among the local retailers given its larger size post the CCT-CMT merger compared to its peers. Moreover, CapitaLand Integrated Commercial Trust being the largest retail landlord / operator in Singapore would be able to draw synergies and economies of scale when both portfolios are combined.

How does Mercatus’ portfolio augment CICT’s portfolio?

  • - Read this at SGinvestors.io -
  • CapitaLand Integrated Commercial Trust’s overall retail portfolio will increase to 62% vs 60% by NPI contribution and 48% from 41% by NLA.
  • While retail sector has been going through a structural change with the uprising of e-commerce, Singapore’s retail especially suburban retail malls have shown resilience during difficult times such as COVID-19 pandemic and periods of recession.
  • Given CapitaLand Integrated Commercial Trust’s dominance in Singapore’s retail sector, we believe it will be able to draw synergies and extract more economies of scale from the portfolio. In addition, we believe CapitaLand Integrated Commercial Trust will be able to reap further benefits through asset rejuvenation or tenant remixing given its extensive platform of new / existing retailers in Singapore.

Room to raise yields?

  • Read more at SGinvestors.io.




Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-12



Read also DBS's most recent report:
2023-08-02 CapitaLand Integrated Commercial Trust - Onward As One.

Previous report by DBS:
2023-02-02 CapitaLand Integrated Commercial Trust - Going From Strength To Strength.

Price targets by 5 other brokers at CapitaLand Integrated Commercial Trust Target Prices.

Listing of research reports at CapitaLand Integrated Commercial Trust Analyst Reports.

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





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