CapitaLand Integrated Commercial Trust - RHB Invest 2024-02-07: Riding On Singapore’s Resilience & Recovery; BUY

CapitaLand Integrated Commercial Trust - Riding On Singapore’s Resilience & Recovery; BUY

Published:
CapitaLand Integrated Commercial Trust (SGX:C38U) | SGinvestors.ioCapitaLand Integrated Commercial Trust (SGX:C38U)
  • CapitaLand Integrated Commercial Trust (SGX:C38U)’s 2H/FY23 results were in line. Portfolio metrics are expected to stay firm this year after a strong FY23.
  • Key catalyst is potential divestment of Singapore assets, which will strengthen balance sheet and position for acquisition of higher-quality assets from sponsor.
  • - Read this at SGinvestors.io -

Rent reversions to stay in positive mid-single digit in FY24

  • Rent reversions to stay in positive mid-single digit in FY24 for the office and retail portfolios. This comes after a strong FY23, where the office and retail portfolios registered healthy rent reversions of ~9%, with a much stronger 4Q.
  • Office portfolio occupancy rose 0.3ppts q-o-q to 96.7% but is expected to decline in 1Q with the exit of Commerzbank at Gallileo at end-January. WeWork, its second largest tenant (~2.4% of total rent) has been prompt in rental payments and management currently sees no major concerns.

Divestments likely a key catalyst

  • - Read this at SGinvestors.io -
  • CapitaLand Integrated Commercial Trust's gearing has edged lower to 39.9% (9M23: 40.8%) on the back of valuation gains, with management noting ~37% as a comfortable level in the current market.

Gallileo is expected to undergo major upgradation

  • Read more at SGinvestors.io.





Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-02-07



Previous report by RHB:
2023-10-27 CapitaLand Integrated Commercial Trust - Time For A Relook; Upgrade To BUY.

Price targets by 2 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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