- CapitaLand Integrated Commercial Trust (SGX:C38U)’s 3Q23 business updates indicate increasing trend for gross revenue and NPI albeit at a slower pace and with weaker margins.
- Occupancy improved sequentially with gains across retail, office and integrated developments.
- - Read this at SGinvestors.io -
- We lower our DDM-based target price for CapitaLand Integrated Commercial Trust by 11% to S$1.90 due to higher cost of equity and maintain our BUY rating.
Stable financial performance
- CapitaLand Integrated Commercial Trust's 3Q23 gross revenue of S$391.3m was +1.3% q-o-q, +4.6% y-o-y. NPI declined 0.4% q-o-q but was up 0.6% y-o-y. 9M23 revenue and NPI was up 9.8% and 6.7% y-o-y, respectively. NPI margins continue to slide (~1% q-o-q, ~3% y-o-y) due to higher overall costs.
- - Read this at SGinvestors.io -
- Management guided for FY24 funding cost to range between 3.5% to “high 3%” vs current 3.3%. Management of CapitaLand Integrated Commercial Trust reaffirmed access to capital markets and loans. Of note, half of CapitaLand Integrated Commercial Trust’s S$9.7b debt comprises bonds.
Healthy operating metrics
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2023-10-30
Read also Maybank's most recent report:
2024-08-13 CapitaLand Integrated Commercial Trust - Resilient Portfolio, Growing Distribution.
Previous report by Maybank:
2024-04-21 CapitaLand Integrated Commercial Trust - 1Q24 Update A Mixed Bag.
Price targets by 4 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