CapitaLand Integrated Commercial Trust - Maybank Research 2024-08-13: Resilient Portfolio, Growing Distribution

CapitaLand Integrated Commercial Trust - Resilient Portfolio, Growing Distribution

Published:
CapitaLand Integrated Commercial Trust (SGX:C38U) | SGinvestors.ioCapitaLand Integrated Commercial Trust (SGX:C38U)
  • CapitaLand Integrated Commercial Trust (SGX:C38U) reported 1H DPU of S$5.43 cents, -0.4% h-o-h/+2.5% y-o-y. Top-line growth coupled with cost management mitigated the impact of higher interest expenses. Portfolio occupancy was steady with strength in retail offsetting the slippage in office.

Steady performance

  • - Read this at SGinvestors.io -
  • Management is waiting for an opportune time to undertake capital recycling or redevelopment projects.
  • All in, no major surprises. Valuations are fair but we retain our BUY and S$2.25 target price on resilient income and credit profile.

Healthy operating metrics

  • CapitaLand Integrated Commercial Trust's 1H24 revenue and NPI grew 0.9%/2.2% h-o-h/ y-o-y. Growth was supported by higher revenue from existing properties, offsetting the absence of income from Gallileo (undergoing AEI). New property management agreement and lower utilities expenses helped lift margins.
  • - Read this at SGinvestors.io -
  • Office occupancy slipped with lower occupancy in Singapore and Germany.
  • Retail rent reversion was +9.3%, relatively similar for suburbs and downtown.
  • Overall tenant sales were flat due to high base effects and high outbound travel during school holidays. Office reversion was mid-teens.
  • Management of CapitaLand Integrated Commercial Trust reiterated high single digit reversion guide for the full year. Potential downside for office for both Singapore and overseas exist while retail is relatively more steady.
  • Stable financial ratios

    • 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/ 2024-08-13



    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





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