Post Reply
141-160 of 416
Look Like reverse gear to $1.7 again
RHB upgrades CICT to &lsquo buy&rsquo on strong growth
RHB Research has upgraded Capitaland Integrated Commercial Trust : C38U +1.75% (CICT) to &ldquo buy&rdquo from &ldquo neutral&rdquo on the back of CICT&rsquo s strong operational growth, driven by retail rental reversion and office occupancy increases.
The research house maintained its price target at S$2, which implies an FY2023 yield of 6 per cent, it said on Friday (Oct 27).
CICT had reported its Q3 business updates on Thursday, with its results outperforming RHB&rsquo s expectations, said analyst Vijay Natarajan.
He noted that its unit valuations are now more attractive at a price-to-book value ratio of 0.8 times after the recent market sell-off, referring to the closing price of S$1.71 on Thursday.
He also expects a stable retail rental reversion in light of the resumption of economic activities.
&ldquo We expect the retail rental reversion (for FY2024) to be a mid-single digit, backed by higher tourism revenue and wage growth.&rdquo
Turning to CICT&rsquo s office portfolio, he said he was not so concerned about the possible exit of WeWork, a major tenant. Based on RHB&rsquo s estimates, WeWork&rsquo s leases were signed at about 30 per cent lower rates than the current market rate. In the worst case, if it exits its lease, the space can be back-filled by a tenant paying a higher rental rate.
He added, however, that the management was in talks with WeWork, and there are no rental arrears so far.
He also said that the occupancy rates of overseas assets are expected to take a hit, with the imminent departure of Commerzbank from Gallileo, a Grade-A commercial building in Frankfurt, and a tenant leaving 100 Arthur Street, a Grade-A office building, in Sydney.
CICT is in advanced talks on backfilling 67 per cent of vacated space at 100 Arthur Street, and finalising the asset-enhancement plan at Gallileo, which may lead to a downtime of about 18 months.
With a relatively high gearing of 40.8 per cent, Natarajan noted CICT should divest some smaller retail malls and pare down its stakes in office assets to unlock value and bring gearing down to below 40 per cent.
&ldquo Acquisitions are unlikely, as its high cost of capital limits yield-accretive acquisition opportunities.&rdquo
Meanwhile, he expects CICT&rsquo s strong operational growth to offset interest cost pressures, with a relatively healthy debt hedge of 78 per cent. Net property income margins should also stabilise around current levels, and the average borrowing cost should stay below 3.5 per cent for the full year.
&ldquo We expect its overall portfolio to remain stable, with slight gains in its Singapore assets, mainly from income growth, offsetting a slight valuation decline for overseas assets and the foreign exchange impact,&rdquo said Natarajan.
a sudden spike hope next week reach 1.8 again
CapitaLand Integrated Books Higher Net Property Income, Revenue in Q3
26 Oct 2023
Sign of upwards trends
10:05 PM EDT, 10/25/2023 (MT Newswires) -- CapitaLand Integrated Commercial Trust (SGX:C38U) booked a net property income of SG$275 million in the third quarter, an increase of 0.6% from a year ago.
Revenue rose 4.6% year on year to SG$391.3 million, according to a Thursday bourse disclosure.
The trust' s portfolio committed occupancy stood at 97.3% as of Sept. 30, with a portfolio weighted average lease expiry of 3.5 years.
Price (SGD): S$1.70, Change: S$0.00, Percent Change: 0.00%
26 Oct 2023
Sign of upwards trends
10:05 PM EDT, 10/25/2023 (MT Newswires) -- CapitaLand Integrated Commercial Trust (SGX:C38U) booked a net property income of SG$275 million in the third quarter, an increase of 0.6% from a year ago.
Revenue rose 4.6% year on year to SG$391.3 million, according to a Thursday bourse disclosure.
The trust' s portfolio committed occupancy stood at 97.3% as of Sept. 30, with a portfolio weighted average lease expiry of 3.5 years.
Price (SGD): S$1.70, Change: S$0.00, Percent Change: 0.00%
CICT reports 0.6% higher net property income to S$275 million on rental growth
CAPITALAND Integrated Commercial Trust : C38U +0.59%&rsquo s (CICT) net property income (NPI) grew a slight 0.6 per cent on year to S$275 million for the third quarter ended September.
Gross revenue for the quarter rose 4.6 per cent to S$391.3 million, said the manager in a business update on Thursday (Oct 26).
For the three quarters ended September, gross revenue increased 9.8 per cent to S$1.2 billion and NPI rose 6.8 per cent to S$827.3 million.
The growth was led by acquisitions completed in the first half of 2022, as well as higher gross rental income from existing properties.
However, the increase in rental income was offset by a rise in operating expenses, which the manager attributed to increased actual occupancy and shopper traffic.
In its retail portfolio, shopper traffic rose 12.9 per cent for the three quarters on the year, with strong contribution from downtown malls led by tourism recovery, especially by Chinese tourists.
For the quarter, CICT registered a minor growth in portfolio committed occupancy at 97.3 per cent, 0.6 percentage point higher compared with the second quarter.
Weighted average lease to expiry, which is based on monthly gross rental income and excludes gross turnover rents as at Sep 30, remained at a stable 3.5 years.
The real estate investment trust (Reit) also recorded steady growth in both Singapore&rsquo s and Germany&rsquo s office markets, leading to a 1 per cent rise in its office portfolio occupancy rate to 96.4 per cent.
Singapore&rsquo s office portfolio, in particular, registered a 98 per cent occupancy rate with average rent increasing to S$10.45 per square foot per month.
This was attributable to major new leases signed in Q3, including tenants The Work Project at Capital Tower and CapitaGreen, as well as Pernod Ricard at Six Battery Road.
Additionally, the manager highlighted its &ldquo proactive capital management&rdquo , with an average debt term to maturity at 4.1 years, as well as an aggregate leverage at 40.8 per cent. This includes proportionate share of borrowings and deposited property values of joint ventures.
As at end-September, the ratio of total gross borrowings to total net assets stood at 71.5 per cent.
Of the S$9.7 billion total borrowings, 78 per cent was with a fixed interest rate.
Assuming a 1 per cent per annum increase in interest rate, the Reit would incur S$21.9 million more interest rate expenses on a full-year basis, computed on floating rate borrowings.
The estimated distribution per unit would therefore be S$0.0033 less, based on the number of units issued at Sep 30.
good to see it is movingg upwards
- Subpar Yield
- Elevated Gearing Ratio
- Diminished Interest Coverage Ratio
Pros:
- Robust Occupancy Rate
It' s worth noting that the REIT faces the challenge of grappling with high borrowing costs, which may necessitate a rental rate adjustment. While the REIT boasts a portfolio of high-quality assets, its Distribution Per Unit (DPU) is anticipated to experience sustained decline due to a multitude of influencing factors. .
Don' t know but good for scooping up more shares.
Crowds are still great in our shopping malls.
But electricity and water prices are going up and GST would go up too.
Crowds are still great in our shopping malls.
But electricity and water prices are going up and GST would go up too.
will it go lower than 1.7 ???
Bought more today at 1.86 👍 👍
How to Plan for Your Retirement
https://www.youtube.com/watch?v=5meV-KuBxFo& t=11s
Back in position, scooped up some cict at 1.88 today 👍 👍 👍
Did you know that there are more than 10 Retail REITs listed in Singapore?
https://www.youtube.com/watch?v=9Ft0WRrWzhU
https://www.youtube.com/watch?v=9Ft0WRrWzhU
CICT posts 1.5% rise in H1 DPU to S$0.053
CAPITALAND Integrated Commercial Trust : C38U 0% (CICT)&rsquo s distribution per unit (DPU) rose by 1.5 per cent to S$0.053 for its first half ended Jun 30, 2023, from S$0.0522 the year before.
Gross revenue for the half-year period was up 12.7 per cent to S$774.8 million, from S$687.6 million in the same period a year earlier.
This was mainly due to contributions from CICT&rsquo s acquisitions of CapitaSky and its Australian portfolio, its asset enhancement initiative (AEI) at Raffles City Singapore, and increased rental income from most of its Singapore properties, the trust&rsquo s manager said on Tuesday (Aug 1).
These gains were partially offset by a 47.4 per cent year-on-year increase in finance costs from additional borrowings for the acquisitions and higher interest rates.
Net property income (NPI) grew 10.1 per cent on the year to S$552.3 million for the half year, from S$501.6 million.
CICT had also received a one-time government grant of S$34.4 million in the half-year period to defray the costs for construction of an underground pedestrian link at Funan Mall.
Distributable income rose 1.7 per cent year on year to S$353.2 million, from S$347.3 million.
The distribution will be paid out on Sep 15, 2023, after the record date on Aug 10, 2023.
CICT&rsquo s financial performance in the second quarter was boosted by full contributions from CapitaSky in Singapore, as well as 101-103 Miller Street and Greenwood Plaza in Sydney, as the acquisitions of these assets were completed during the quarter.
This resulted in an 11 per cent year-on-year growth in gross revenue to S$386.3 million for the quarter, along with a 9 per cent higher NPI of S$276 million for Q2.
Top line improvements for the latest quarter, however, were offset in part by higher operating expenses, largely due to utilities, noted the manager.
Strong occupancy
As at Jun 30, CICT&rsquo s committed portfolio occupancy was up by 0.5 percentage point at 96.7 per cent from 96.2 per cent as at Mar 31. Committed occupancies for its retail, office and integrated development portfolios stood at 98.7 per cent, 95.4 per cent and 97.8 per cent, respectively.
Tenant sales for CICT&rsquo s retail portfolio increased year on year, with downtown malls rising 10.2 per cent and suburban malls up 3.7 per cent for the year to June 2023
Tony Tan, chief executive of the trust&rsquo s manager, said at the results briefing that tenant sales for the portfolio are currently 8.3 per cent higher than pre-Covid-19 levels.
The manager believes the momentum for tenant sales could continue in the second half.
Lee Yi Zhuan, head of portfolio management, noted that Chinese tourists are at a fraction of pre-Covid levels. Meanwhile, concerts and events being held in the second half could also drive more tourists to Singapore.
The manager, however, is more cautious on the office sector for the second half. Shadow space, as well as a major completion in the market coming from IOI Central Boulevard Towers, could temper rent growth.
But Lee added that the manager is not overly concerned.
&ldquo On a Singapore portfolio basis, we actually see more expansion requirements than downsize requirements, both in terms of the number of tenants as well as the amount of space,&rdquo he said.
He added that rent reversions for the office sector may come off a little by year-end, but the manager still expects it to be &ldquo firmly in the positive territory&rdquo .
For the half-year period, the office and retail leases in its Singapore portfolio reported positive rent reversions of 9.6 per cent for office and 6.9 per cent for retail.
Right composition
In response to a question on whether the manager would consider pivoting more of the portfolio to retail, Tan noted that the Reit currently has 53 per cent of its portfolio revenue coming from retail.
&ldquo We will see how things will shape up&hellip but at the moment, I think we are quite happy with the composition,&rdquo he said.
In terms of acquisitions, Tan noted that there is still a gap between buyers and sellers over price expectations, but the manager remains open to opportunities across its markets.
&ldquo Ideally, we still want to build our base in Singapore as much as possible,&rdquo he said. Apart from acquisitions, the manager would also consider portfolio expansion through development to grow CICT&rsquo s asset size.
The weighted average lease expiry (Wale) for the trust&rsquo s overall portfolio stood at 3.6 years. Wale for its portfolios stood at 2.2 years for individual retail, 3.6 years for office and 5.3 years for integrated development portfolios.
Tan noted that the CQ @ Clarke Quay development will finish its phased AEI works by late H2 FY2023. The asset is expected to contribute positively to the trust&rsquo s performance in FY2024 when its tenants progressively begin operations.
As at June 30, CICT&rsquo s aggregate leverage stood at 40.4 per cent, down from 40.9 per cent three months earlier. Total borrowings amounted to S$9.6 billion, with 78 per cent of this on fixed rates.
CICT&rsquo s adjusted net asset value per unit, after excluding H1 2023 distributable income to unitholders, rose to S$2.07 as at Jun 30, up from S$2.06 in Dec.
Did you know that there are more than 10 Retail REITs listed in Singapore? In this video, we will touch on 4 retail reits that are popular among Singaporean investors and also do a quick comparison among them too. https://www.youtube.com/watch?v=9Ft0WRrWzhU
Sold at 2.01 today... if weak again will buy again 👍 👍 👍
Return for this bond is 3.94%, vs our REIT div yield 4.5%@1.95. Not much different :(
Joelton ( Date: 10-Jun-2023 12:00) Posted:
|
CICT&rsquo s 3.938% senior green bond over two times subscribed
CAPITALAND Integrated Commercial Trust&rsquo s (CICT) seven-year senior green bond was over two times subscribed, said book runner DBS on Thursday (Jun 8).
DBS said it had received interest from 53 accounts which booked over S$800 million, including S$132 million from JLM International. The issue size was S$400 million.
The notes carry a coupon rate of 3.938 per cent, or 87.3 basis points over the Singapore overnight rate average.
They will be issued at par and will pay out semi-annually in arrear on Jun 19 and Dec 19 each year. The first coupon will be paid out on Dec 19 this year.
The bond was three-quarters subscribed by funds or institutions, while the remainder was split almost equally between the public sector and banks or corporations.
About 93 per cent of investors were from Singapore.
Proceeds raised will be used to finance or refinance the eligible green projects undertaken by CICT and its subsidiaries under the trust&rsquo s green finance framework. DBS is the green structuring adviser for the notes.
DBS expects Moody&rsquo s to issue an A3 rating on the bonds, which are guaranteed by HSBC Institutional Trust Services (Singapore) &ndash the trustee of CICT.
The notes mature on Jun 19, 2030, and may be redeemed at the option of the issuer at par, in whole but not in part.
The trio of local banks &ndash DBS, HSBC, OCBC &ndash were the joint lead managers and book runners.
Good point, save gun powder in case going under 1.85 will buy more
stonkmaster ( Date: 08-Jun-2023 17:04) Posted:
|
Wait 1.8 scoop better
vicloo ( Date: 08-Jun-2023 15:42) Posted:
|