- CapitaLand India Trust (SGX:CY6U) reported solid 1H24 DPU of 3.64 cents, +8% y-o-y, forming 50% of our forecast.
8% y-o-y growth in 1H24 DPU is one of the strongest in the sector
- - Read this at SGinvestors.io -
- Gross revenues and net property income in S$ terms rose by 24% y-o-y and 21% y-o-y to S$136.1mil and S$103.5mil respectively. This is due to higher rental achieved across the portfolio, income contribution from acquisitions - aVance II, Pune, Industrial facility, Mahindra World City, ITPH Block A and ITPP-H.
- Net property income margins remained fairly stable at ~76% in 1H24 (vs 77% in 1H23).
- - Read this at SGinvestors.io -
Our view
- A strong 1H24 supported by stable S$-INR exchange rate gives us with confidence that CapitaLand India Trust is back on the growth path, with expected 8% CAGR in DPU over FY24-25F. This is aided by the strong pipeline of inorganic and organic growth drivers.
- We see CapitaLand India Trust hitting FY24-25F yields of 7.0%-7.3% at the current CapitaLand India Trust share price, with more upside if acquisitions materialise.
Operational outlook remains robust on strong positive reversions.
- Read more at SGinvestors.io.
