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CHARISMA ENERGY SERVICES
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investshare
Supreme |
21-Jul-2021 11:38
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Thanks. That is what I thought too. CLIM will be a asset management company, price should be much higher than NAV.
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tguanhoc
Senior |
21-Jul-2021 11:35
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As we are very small retail investors, the only way to make money is to see the big picture of the institutional investors. They are the real mover and shakers of CLI not us. We retail investors must learn to play their game and play it well. | ||||
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tguanhoc
Senior |
21-Jul-2021 11:20
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The institutional investors have very deep pockets to hold on to their shares. They have a strategic radar screen that would drive the CLI shares to the roof in view of the positive global economic growth outlook. | ||||
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tguanhoc
Senior |
21-Jul-2021 11:15
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The institutional investors include Temasek Holdings and CAPLAND. They are laughing to the bank at the expense of retail investors especially those who had shorted the shares last week without any common sense of judgment of pure speculative. | ||||
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Lobster
Elite |
21-Jul-2021 11:13
Yells: "Even Adam Khoo believes in the Black Market!" |
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CapitaLand Honing its focus for faster growth
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tguanhoc
Senior |
21-Jul-2021 11:09
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The retail investors sold off last week. | ||||
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beng1102
Elite |
21-Jul-2021 11:09
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Together with the shortist they use fear and scare tactic to induce selling.
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tguanhoc
Senior |
21-Jul-2021 11:07
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It is sheer disappointing to learn that many retail investors sold off their shares to institutional investors. Those who had done so like today will live to regret their impatience and lack of foresight. The certainty and predictability of the global stock market post COVID-19 would gather momentum through to 2022. If the Democrats were to secure the mid-term elections, then the predictable stock market will follow suit through to 2023. Patience and perseverance are key ingredients for CLI investors. |
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Adrianinsing
Elite |
21-Jul-2021 10:48
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Very impressive and relentless surge forwards. Looks like investors have finally read the CapitaLand delisting details
and correctly concluded that it?s a bargain at these prices - finally ! Could hit $4.10 soon |
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beng1102
Elite |
21-Jul-2021 10:46
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Still charging upward now $3.92.
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Lobster
Elite |
21-Jul-2021 10:22
Yells: "Even Adam Khoo believes in the Black Market!" |
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Smashed $3.90 now, the spark in a dull market. suddenly my assessment makes some sense.
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lukewong82
Master |
21-Jul-2021 10:20
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CLIM (CLI) is like an IPO issue price of $2.82 but " opening market/black market" price is $3.14 to $3.62 So add $3.14 (lowest market price) + $0.951 + about $0.30 = about $4.40 in mid September
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Joelton
Supreme |
21-Jul-2021 09:57
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What CapitaLand' s restructure means for its REITs
If everything goes according to plan, and shareholders vote in favour of the various inter-dependent resolutions at CapitaLand&rsquo s EGM and scheme meeting on Aug 10, CapitaLand Investment (CLI) is likely to make its debut on Sept 17. Based on the valuation of $4.102 each CapitaLand shareholder receives one CLI share, 0.155 CapitaLand Integrated Commercial Trust unit, and 95.1 cents in cash. As a result, CLI&rsquo s theoretical net asset value (NAV) on a pro forma basis is $2.823. For CLI to be a success, its share price should trade at or above its NAV.
What does CapitaLand&rsquo s restructure mean for its REITs?
According to Lee Chee Koon, group CEO of CapitaLand, CLI will be sponsor to the CapitaLand&rsquo s six REITs, CapitaLand Integrated Commercial Trust (CICT), Ascendas REIT, CapitaLand China Trust, Ascott Residence Trust (ART), Ascendas India Trust and
CapitaLand Mall Malaysia Trust.
&ldquo [With] CLI being sponsor of the REITs, we will definitely want to make sure the REITs do well. We will continue to provide the same level of support and our wish is to continue to hold long-term stakes in the REITs of 20% to 25%. Whether we will review this target depends on how the various REITs are growing. If they are growing significantly bigger we can review this,&rdquo Lee says.
He also clarifies that if the privately held CapitaLand Development (CLD) can inject an asset into the REIT it would do so. &ldquo This depends on specific details of joint-venture agreements between [CLD] and the REITs,&rdquo Lee says. For instance CapitaLand is in a joint venture with CICT to develop CapitaSpring which has topped out. CICT has a call option to acquire the portion of CapitaSpring it doesn not own.
Another entity, ART and CapitaLand are jointly developing a 678-bed purpose build student accomodation (PBSA) to serve over 35,000 undergraduate and graduate students from the nearby University of South Carolina (USC). Construction of the student accommodation asset is scheduled to start in 3Q2021 and complete in 2Q2023.
&ldquo There is no need for double handling if CLD can inject the asset directly into the REIT,&rdquo Lee confirms.
&ldquo We have set out recent recent transactions which are a good representation of transactions where we partnered with our REITs, which demonstrates the role of a responsible sponsor to help the REIT digest a major redevelopment,&rdquo Andrew Lim, group CFO of CapitaLand, points out. &ldquo That speaks to our support and continued commitment when the REIT identifies something interesting to deliver to their own unitholders, and where CLI can step in with our balance sheet to support the organic growth of our REITs.&rdquo
Looking ahead, Lim indicates that much of the support could be tied to redeveloping and renewing the REITs&rsquo portfolio. &ldquo This renewal theme is starting to play out and could become a major capital requirement in Singapore and China for our older assets where our REITs are starting to redevelop and rejuvenate. This is where both sponsor and REIT can come in to renew our current portfolio to repurpose and future proof these assets in a post-Covid environment,&rdquo Lim elaborates.
Among a major redevelopment involving CapitaLand, ART, City Developments and CDL Hospitality Trusts is the redevelopment of
Liang Court into an integrated development with hotel, serviced residence, shopping mall and two residential towers with a fresh 99-year lease.
CLI on the other hand, could grow by acquiring new assets or platforms to create new REITs, funds and products. Or, CLI could acquire certain platforms in certain markets that the CapitaLand group may be interested in. CLI could also form joint-ventures and in the seeding new funds. &ldquo There could be other major M& As we could be looking at. One important point is having the ecosystem with
CLD which gives us lot of flexibility to look at M& A, and having a partner we can work with allows us the flexibility to see which parts of capital we can call on to maximise fire power and maximise returns to various stakeholders,&rdquo CEO Lee says.
Whatever the case, every transaction must complement CLI and the CapitaLand group&rsquo s existing operations. &ldquo " I must stress we do not want to grow AUM for AUM&rsquo s sake. We are not, out of the blue, going to go into new asset classes where we have no inherent abilities," Lee asserts.
The rationale for splitting CapitaLand - where 65% of its NAV goes into CLI, and 35% is in a privately held CapitaLand Development (CLD) entity - is so that CLI can trade nearer its NAV. Developers traditionally trade at a discount.
The development cycle for commercial property such as malls, integrated developments and office towers take three years, and stabilising them could take a further three years. CFO Lim refers to capital tied up in developing property as patient capital.
&ldquo If it sits on the balance sheet for anything more than three years it is patient capital, it is not capital that can be converted into funds-under-management (FUM) and generate fee related earnings (FRE),&rdquo he says.
So far, the reception for the restructure is positive. Since the initial announcement in March, CapitaLand&rsquo s share price is up 15%. On July 19, when details of the restructure was announced in a circular, CapitaLand&rsquo s share price was up amidst a sea of red, with the broad market falling.
Credit Suisse has an outperform rating on the stock. &ldquo With $12.6 billion (100% basis) of property investments, expect portfolio reconstitution and capital recycling to remain a key driver of future returns. Expect CLI&rsquo s recently attained [fund management] status in China to accelerate future AUM growth,&rdquo Credit Suisse says. It adds that the valuation of CLI, at a price to book of 0.89 times is attractive versus peers. CLI&rsquo s shares, being given to CapitaLand shareholders at a value of $2.82, are at a discount to the valuation of between $3.14 and $3.62 based on valuation reports.
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PhillipTan
Supreme |
21-Jul-2021 02:44
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CapitaLand Investment to bank on multiple engines for growthCapitaLand Investment (CLI) will look at creating new products as it aims to achieve S$100 billion in funds under management (FUM) by 2024 and grow its lodging business to 160,000 units under management by 2023.In an update on its proposed restructuring, its management said at a virtual briefing on Monday that it is confident of meeting those targets, which represent an increase from S$78 billion FUM and 123,000 units in 2020. This growth will be driven by multiple engines - acquisition right of first refusal (ROFR) to CapitaLand Development&rsquo s pipeline of completed assets of up to S$7.6 billion, organic growth, CLI&rsquo s pipeline of real estate assets under management (AUM) of S$10.1 billion, as well as strategic acquisitions. Touching on organic growth and acquisitions, group chief executive officer of CapitaLand Group, Lee Chee Koon, said: &ldquo Apart from deepening our own Reits, our private equity funds, we will also look at creating new products.&rdquo New Reit platforms is one aspect that CLI is keen on, to add to the existing six Reits. Mr Lee added: &ldquo If there are interesting asset managers that could have a strategic fit with us, that&rsquo s something we can look at." In response to a question on whether CLI would venture into new asset classes, he pointed out that CapitaLand has already started moving into data centres. &ldquo If there are interesting opportunities where we can venture beyond the real estate side to some parts of infrastructure, we may, but the important thing is to make sure we have the right team and the capabilities in place,&rdquo he said. He also said there are plans to add headcount, especially in the fund-management space. In March, the property developer announced it was planning to divide its business into a privately-held development arm, and a new, listed unit (CLI) for its fund-management and lodging-management businesses as well as its real-estate investments. With AUM of about S$115 billion, CLI is expected to be the largest real estate investment manager (REIM) in Asia, and the third-largest listed REIM company globally. For every one CapitaLand share held, shareholders will receive one CLI share, S$0.951 in cash as well as 0.155 unit in CapitaLand Integrated Commercial Trust (CICT). The implied value per share for CapitaLand shareholders is S$4.102. Shares in CapitaLand rose to S$3.88 on Monday after independent financial adviser Evercore Asia (Singapore) deemed its restructuring plan &ldquo fair and reasonable&rdquo in a letter dated July 17. The stock, among the heavily traded counters on the Singapore bourse, closed seven cents or 1.84 per cent higher, with 18.07 million shares changing hands. According to the management, CLI&rsquo s pro forma net asset value for FY2020 works out to S$15.1 billion, of which S$1.2 billion comprises its fee income-related business and its real-estate investments, S$13.9 billion. Its FY2020 revenue and Ebitda stand at nearly S$2 billion and S$1.3 billion, respectively. The targets of S$100 billion under AUM and 160,000 keys are reasonable and achievable, said RHB analyst Vijay Natarajan, given that the fund-management business has already been growing at a compound annual growth rate (CAGR) of 11 per cent between 2015 and last year, and the lodging arm by a CAGR of 20 per cent between 2017 and last year. Barring unforeseen market conditions, he expects CLI will trade closer to its initially stated net asset value (NAV) of S$2.82. As at March 31, its NAV per share stood at S$2.934. Mr Natarajan said: &ldquo There&rsquo s definitely room for upside potential, with the platform having full-stack investment and operating capabilities.&rdquo He added that the upside depends on how well CapitaLand executes its strategy. &ldquo In general, comparable global REIM peers are trading at hefty premiums to their book value and higher PE multiples than CapitaLand. The market likes this kind of recurring-income business in these kinds of conditions, especially in the Asia region, to where a lot of capital is flowing.&rdquo CLI&rsquo s fee income-related business will comprise FUM of S$78 billion and lodging assets under management of S$27.7 billion, while its real estate investments comprise its stakes in listed funds with a S$7.7 billion market value and stakes in unlisted funds with a carrying value of S$5.5 billion. Meanwhile, CLI will have a dividend policy of at least 30 per cent of annual cash profit after tax and minority interests (PATMI), while its annual capital recycling target will stand at S$3 billion. CapitaLand&rsquo s management said that CLI will aim to deliver a sustainable double-digit return on equity. In a note issued ahead of Monday morning&rsquo s briefing, Citi analyst Brandon Lee said that the issuance of major documents on CLI would be a &ldquo marginally positive event, as tangible ROFR from CapitaLand Development, IFA&rsquo s valuation verdict and incremental NAV are mitigated by the entire development expertise kept within CapitaLand Development,&rdquo among other things. In the letter to shareholders, IFA Evercore pointed out that under the planned scheme, shareholders would effectively own a direct stake in a company with lower leverage. CLI&rsquo s pro forma net debt-to-equity ratio is 0.56 times, compared to CapitaLand&rsquo s net debt-to-equity ratio of 0.68 times as at last Dec 31. CapitaLand has called for an extraordinary general meeting (EGM) on Aug 10 for shareholders to vote on the planned transaction. The independent directors have recommended that shareholders approve both a capital reduction exercise and a scheme of arrangement at the upcoming EGM. Shares of CLI is expected to be listed on or around Sept 17. |
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lukewong82
Master |
20-Jul-2021 22:59
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CLIM (CLI) NTA is $2.83. Asia largest reit manager, World 3rd largest reit manager. The lowest doomsday scenario will be CLI will be trading at only 1x NTA = $2.8 when it start trading. So $2.8 + $0.951 + $0.3 = about $4.1 in mid september. (worst prediction) I dun think CLI will trade at only 1.x NTA. More likely it will trade something from 1.2x to 1.5x when it starts trading. Potentially we are looking at $4.3 to $4.5 in mid September.
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ETLee8
Master |
20-Jul-2021 21:30
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Yes, sell CDL n put money on Capital Land
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Lobster
Elite |
20-Jul-2021 20:56
Yells: "Even Adam Khoo believes in the Black Market!" |
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Actually you can never lose...because if you add in the 0.95 cash back and the 0.155 CICT, say chow chow @ $2.10, so another 0.33 cents. So your cost is actually $2.38. A lot of smart alecs, calculate that after restructuring and the payouts, Capitaland will tank to around $2. I say, and I one million % am confident it will go the other way. It will eventually be a five dollar stock. This is a once in a lifetime kind of investment opportunity that will hardly ever ever come again. Especially during a REITS bull run year, you will be laughing all the way to the bank literally.... yes, the price will correct after restructuring, BUT not against current price. The price will go higher nearer EGM, to entice or encourage shareholders to vote in favour, then nearer cum-entitlement and nearer x-entitlement date it will go even higher. Then, that' s the price it will correct after xE, BUT even that, it will not be by 0.09 + 0.95 + 0.33.... no way, it does not work that way. Not this time, not this stock.
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investshare
Supreme |
20-Jul-2021 16:29
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I bought at $3.75, got $0.09 dividend back, so my cost is $3.66. It is like CLIM Ipo to me, intend to hold for long term. | ||||
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Adrianinsing
Elite |
20-Jul-2021 16:23
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x 2 Alert Admin |
It will consolidate first to $3.79 | ||||
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beng1102
Elite |
20-Jul-2021 16:18
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Likely to push up above $4.00 in the next few days.
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