- CapitaLand Integrated Commercial Trust (SGX:C38U) reported 2H23 DPU of S$0.0545, +1.7% y-o-y. CapitaLand Integrated Commercial Trust's DPU of S$0.1075 for FY23 (+1.6% y-o-y) was ~1% below consensus and our estimates.
Topline growth more than offsets higher funding cost
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- Focus is on asset enhancements (AEI) and proactive portfolio management.
- We lift DPU estimates for CapitaLand Integrated Commercial Trust and combined with a lower discount rate, raise our DDM-based target price to S$2.10. Maintain BUY.
Proactive portfolio and prudent cost management
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- Meanwhile, prudent cost management maintained operating jaws. Contribution from prior acquisitions also contributed to full year growth.
- All-in funding cost rose 20bps h-o-h/70bps y-o-y to 3.5%. Guide is for funding cost to be in “mid 3%” range.
- CapitaLand Integrated Commercial Trust's valuation rose 1.2%, led by gains in Singapore which more than offset continued weakness in overseas offices in Australia and Germany. As such, gearing inched down to 39.9% (3Q 40.8%).
Steady operations
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