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Back in the game, scooped some CICT up at 1.94 👍 👍
congratulations for sellers who has made profit.
bye. seller may have left train too early for this round.
interest rate increased cycle hit or near top. reits are main beneficiary.
cict benefits from covid-19 open up. work force return to downtown.
downtown mall rental reversion going forward should be up.
completed aei space in raffles city should have better occupancy by current quarter.
cq@clarke quay aei completing in 3q. from 4q that should also contribute more.
office space may face pressure of us tech firm reducing size. but then chinese tech firm are coming here.
while us tech firm have reducing advertisement revenue the most recent report from tencent shows increased in advetising revenue by 14.6%. so while some not doing well others are growing. that is market for landlord to go after.
bye. seller may have left train too early for this round.
interest rate increased cycle hit or near top. reits are main beneficiary.
cict benefits from covid-19 open up. work force return to downtown.
downtown mall rental reversion going forward should be up.
completed aei space in raffles city should have better occupancy by current quarter.
cq@clarke quay aei completing in 3q. from 4q that should also contribute more.
office space may face pressure of us tech firm reducing size. but then chinese tech firm are coming here.
while us tech firm have reducing advertisement revenue the most recent report from tencent shows increased in advetising revenue by 14.6%. so while some not doing well others are growing. that is market for landlord to go after.
good idea :))
vicloo ( Date: 04-Apr-2023 19:47) Posted:
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Took some profit at 2.03, will buy again under 2 😉 👍 👍 👍
rledchg11 ( Date: 04-Apr-2023 14:32) Posted:
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:)) . finally. not red. :))
but... seems like the slow down of Mr Fed rate hikes.. maybe ... not yet slowing down... after the banks... now not gone out of control... maybe.. the Mr Ped may continue to raise..
also some indicators of PCE... etc.. are showing sign of a mix...
some say, some are moving into Reits....
my guess is peoplare are moving in .. to capture some Q1 DPU. my tikam tikam ... :))
but... seems like the slow down of Mr Fed rate hikes.. maybe ... not yet slowing down... after the banks... now not gone out of control... maybe.. the Mr Ped may continue to raise..
also some indicators of PCE... etc.. are showing sign of a mix...
some say, some are moving into Reits....
my guess is peoplare are moving in .. to capture some Q1 DPU. my tikam tikam ... :))
vicloo ( Date: 04-Apr-2023 10:40) Posted:
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Breaking 2.02 👍 👍 👍
rledchg11 ( Date: 13-Feb-2023 19:17) Posted:
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I think partially is just profit taking exercise.
des_khor ( Date: 02-Mar-2023 13:19) Posted:
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Sold JCube will result lower future DPU ?
https://www.tradingview.com/x/saGz9ILl/
GSS for CICT, under 1.9... anyone collecting? Just scooped more up at 1.9 😁
S-Reits take a hit post-budget, impact on developers mixed
SINGAPORE-LISTED property-related counters traded in a sea of red on Wednesday (Feb 15), as investors processed the latest Budget moves, including a higher Buyer&rsquo s Stamp Duty (BSD) and more housing grants.
Commercial real estate investment trusts (Reits), in particular, took a beating, with declines of as much as 2 per cent. Property developers were also trading lower, while property agents traded mixed.
As at 2.46 pm, CapitaLand Integrated Commercial Trust : C38U -2.04% was down 1.5 per cent at S$1.93 CapitaLand Ascendas Reit : A17U -1.08% lost 1.1 per cent to S$2.75. Frasers Logistics & Commercial Trust : BUOU -0.8% was trading 0.8 per cent lower at S$1.24.
Mapletree Logistics Trust : M44U -1.2% fell 1.8 per cent to S$1.63, and Mapletree Pan Asia Commercial Trust : N2IU -2.89% dropped 1.7 per cent to S$1.70.
Office play Suntec Reit : T82U 0% declined 0.7 per cent to S$1.37, and Keppel Reit : K71U -0.55% was down 1.6 per cent at S$0.90.
Property developer City Developments Limited : C09 -3.2% fell as much as 3.4 per cent shortly after the market opened. By 2.46 pm, the counter was down 3.1 per cent at S$7.88. The same downtrend was observed for UOL : U14 -1.3%, down 1 per cent to S$6.84, and GuocoLand : F17 -2.45%, which traded 1.8 per cent lower at S$1.60.
Property agency PropNex : OYY -2.4% lost 1.2 per cent to S$1.65, while Apac Realty : CLN -0.81% rose 0.8 per cent to S$0.625. Observers believe the additional housing grants announced during Budget should help boost demand for resale flats, which should be mildly positive for property agencies.
In his Budget speech on Tuesday, Finance Minister Lawrence Wong said the government will introduce a higher marginal BSD for higher-value residential and non-residential properties. The change takes effect on Feb 15.
For non-residential properties, the portion of the property&rsquo s value in excess of S$1 million and up to S$1.5 million will be taxed at 4 per cent, while that in excess of S$1.5 million will be taxed at 5 per cent &ndash up from the current tax rate of 3 per cent.
The changes are expected to affect 60 per cent of non-residential properties, and may hit harder in the en bloc market, where higher duties could widen the price expectation gap between buyers and sellers. Big-ticket billion-dollar deals could also be affected.
GSS for CICT reit today.... Any picking up durians.... Just bought some at 1.93 👍 👍 👍
my average is at 2.02 :))
piang.
lets see what Mr Fed say in coming meeting.
piang.
lets see what Mr Fed say in coming meeting.
wunderland ( Date: 13-Feb-2023 18:12) Posted:
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Just average down to 1.99... It will come back to above 2 in the matter of time weeks to 1-2 mths 😉 👍
wunderland ( Date: 13-Feb-2023 18:12) Posted:
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Divest JCube will lower DPU ?. Good business mostly benefit tenants not landlords as rental are fixed ! Therefore , I guess this is the reason to drop ?
I am feeling dumb to add before CD, when I saw the drop from 2.14 to 2.08. The drop from 2.15 to to 1.94 is such short duration esp after XD. Feeling so stuck because I bought so high (previous holdings). I still wonder why the drop is so drastic. Is the fed rate hike news that bad? I thought Fed has been flipflopping about inflation/disinflation, and target rate above 5%, but we are aware of these months ago? It feels like to more Fed comes out to talk, the worst the market sentiment even though there was no real material change they made. But the reopening is real, beneficial to most businesses, esp retail, F& B, tourism, I imagine this is a much better real effective that Asia stands to benefit. Even this JCube thingy, is it bad news at all? Sucks... not able to see any sensible reason for this counter to fall so much despite seemingly better market outlook?
Price drop due to JCube?
Back in the game at 1.94-1.95 today 😁
CICT is a beneficiary of the reopening
CapitaLand Integrated Commercial Trust (CICT) is a good proxy to the reopening theme, with both its retail and office assets expected to see a boom this year. With that, analysts are generally keeping a positive stance on the trust, despite the current environment of rising interest rates.
This also comes on the back of CICT announcing its latest FY2022 ended December results, which saw DPU for the year end period come in 1.7% higher y-o-y at 10.58 cents, while the 2HFY2022 period saw DPU gain 2.7% y-o-y to 5.36 cents.
During the 2HFY2022, gross revenue rose by 14.4% y-o-y to $754.1 million mainly due to the contributions from the acquisitions of 66 Goulburn Street, 100 Arthur Street, 50.0% interest in 101-103 Miller Street and Greenwood Plaza in Sydney, Australia. The contribution from the acquisition of CapitaSky in Singapore, as well as higher occupancy, rental rates, as well as higher rental on gross turnover also led to the higher gross revenue. Net property income (NPI) for the 2HFY2022 grew by 13.1% y-o-y to $541.7 million.
For the FY2022, gross revenue grew by 10.5% y-o-y to $1.44 billion while NPI grew by 9.7% y-o-y to $1.04 billion.
The way Citi Research analyst Brandon Lee sees it, the recent results painted the ongoing recover in Singapore&rsquo s overall retail sector, as evidenced by CICT&rsquo s fourth straight quarter of positive rent reversion, tenants&rsquo sales remaining above pre-Covid and improved occupancy.
While office appears to be slowing down in terms of rent reversions and leasing demand, Lee expects FY2023 reversions to still remain positive given competitive rents of $11.10 psf/month compared to spot of $11.70 pst.
Overall, CICT has underperformed Singapore REITs (S-REITs), and despite the slight earnings miss, Lee is keeping his &ldquo buy&rdquo call on CICT and $2.35 target price, in view of decent DPU growth driven by increased income from CapitaSpring and two asset enhancement initiatives (AEIs) in Singapore, continued recovery in the Singapore retail sector and potential redevelopment opportunities.
For CGS-CIMB Research which has also reiterated its &ldquo add&rdquo call and $2.35 target price, analysts Lock Mun yee and Natalie Ong are upbeat on the trust&rsquo s rental reversion gathering upward momentum.
CICT&rsquo s rental reversions continued to improve with FY2022 retail rental reversion at +1.2% while office reversion was stronger at +7.6%, spread over 2.5 million sqft of new and renewed retail and office leases signed in FY2022. In terms of operating metrics, retail tenant sales were 22.5% higher y-o-y, led by a 38.1% improvement from downtown malls. Suburban malls achieved 11.5% y-o-y higher tenant sales. CICT continues to see demand from new F& B and fashion offerings.
Office committed occupancy is at 94.4% at end-FY2022. Leasing enquiries came mainly from financial services, technology, media and telecom (TMT) and energy and commodities sectors. CICT has 17%/22.7% of office and retail leases to be renewed over FY2023-FY2024. The ongoing asset enhancement at Clarke Quay is on track to complete by 3Q2023. CICT has added two new operators to its list of committed tenants at the property.
Meanwhile, gearing dripped slightly to 40.4% with average cost of debt at 2.7%. Management guided that average funding cost could potentially trend up towards the 3% mark in FY2023. CICT has about 12% and 17% of its total debt to be refinanced in FY2023-FY2024.
Management indicated that a 1% rise in its interest cost could impact its DPU by 0.28 cents. With a higher cost of capital, CICT would look to complete ongoing AEIs at Raffles City Singapore as well as at Clarke Quay to boost return to unitholders. It will also continue to be more selective in terms of inorganic growth opportunities.
Similarly, DBS Group Research is keeping its &ldquo buy&rdquo call on CICT with a higher target price of $2.40 from $2.20 previously. The way analysts Rachel Tan and Derek Tan see it, CICT is the largest integrated commercial S-REIT that rides on the upcycle of the office and retail markets in Singapore. Hence, with its Singapore assets contributing over 90% of its revenue, CICT rides on the stability and resilience of the Singapore economy.
The analysts also like CICT as it is one of the few S-REITs with both organic and inorganic growth opportunities. &ldquo CICT is one of the few S-REITs that could still deliver a two-year DPU CAGR of about 4%, despite the cloudy macroeconomic conditions. Aside from organic growth, CICT is one of the few S-REITs with an opportunity to acquire newly completed prime Singapore commercial assets, potentially from its sponsor pipeline,&rdquo they say.
Furthermore, China tourists returning to Singapore could mean another boost to growth that could drive the company&rsquo s share price performance.
While most research houses are upbeat and bullish on CICT, RHB Group Research has downgraded its call on CICT to &ldquo neutral&rdquo from &ldquo buy&rdquo with an unchanged target price of $2.00, as results came in below expectations. While portfolio operating metrics improved in 4QFY2022 and FY2022, growth was comparatively lower compared that of peers.
&ldquo The positive momentum is expected to be maintained in 1HFY2023 before slowing down in 2HFY2023 &ndash but operational gains will be offset by higher interest and inflationary pressures. Valuations are fair &ndash CICT is trading at its book value and offers 5% dividend yields,&rdquo says analyst Vijay Natarajan.
Natarajan is also expecting acquisitions to be challenging for CICT as its net gearing is on the high side at 40.4% but there is a possibility of the trust paring down its stake in some office assets or selling smaller malls and increasing its stake in some newer assets.
For OCBC Investment Research, it has kept its &ldquo hold&rdquo recommendation on CICT with a fair value estimate of $2.17. The research team likes that CICT is the largest S-REIT by market capitalisation and assets in Singapore. It also has a strong sponsor in CapitaLand Investment, and its scale has been significantly enlarged following the completion of the merger with CapitaLand Commercial Trust in October 2020.
&ldquo CICT now offers investors diverse exposure to the suburban and downtown retail market and core CBD office sector in Singapore, coupled with a small exposure to Germany, and has recently penetrated the Australian commercial market. We see positive signs of recovery from the pandemic, and view CICT as a good proxy to the reopening theme,&rdquo says the research team.
However, its aggregate leverage ratio of 40.4% is slightly on the high side. But the research team has highlighted mitigating factors, such as having 81% of its borrowings hedged and CICT&rsquo s average term to maturity for its debt is among the longest in the S-REITs sector.
Analysts mixed on CICT&rsquo s outlook despite higher DPU
CAPITALAND Integrated Commercial Trust&rsquo s : C38U +0.47% (CICT) recent H2 FY2022 earnings drew mixed reactions from analysts despite the trust recording a 2.7 per cent increase in distribution per unit (DPU) to S$0.0536.
RHB Research downgraded its call to &ldquo neutral&rdquo from &ldquo buy&rdquo with an unchanged target price of S$2, noting that the trust&rsquo s growth is comparatively lower than its peers even though it reported improving operating portfolio metrics in Q4 and FY2022.
In a report on Thursday (Feb 2), analyst Vijay Natarajan said he deemed valuations fair as the trust is currently trading at its book value, and offers 5 per cent dividend yields.
Natarajan estimated CICT&rsquo s positive momentum to sustain in H1 FY2023 before slowing down in the second half of the year, with operational gains being offset by higher interest and inflationary pressures.
The research house trimmed FY2023 and FY2024 DPU forecasts for CICT by 2-3 per cent, while estimating overall interest cost for borrowings in FY2023 to be in the mid-3 per cent levels, up from 2.7 per cent.
On the other hand, DBS Group Research raised its target price to S$2.40 from $2.20 while reiterating its &ldquo buy&rdquo call on CICT, as it said the trust will benefit from a broad recovery trajectory.
Unlike RHB, DBS said CICT is currently trading at a &ldquo very attractive level to ride on the growth trajectory&rdquo .
Due to expectations of more rental income contributions from FY2023 onwards, the brokerage is positive on CICT&rsquo s DPU growth prospects, which it said will be further boosted by operational normalisation once ongoing asset enhancement initiatives are completed.
It liked CICT for its ability to deliver a two-year DPU compound annual growth rate of about 4 per cent &ldquo despite the cloudy macroeconomic conditions&rdquo .
It also highlighted the trust as one of the few Singapore real estate investment trusts with an opportunity to acquire newly completed prime commercial assets in Singapore, potentially from its sponsor pipeline.
The return of Chinese tourists could further provide upside to its unit price as CICT&rsquo s retail portfolio would stand to see a stronger recovery, according to DBS.
Meanwhile, CGS-CIMB tweaked its FY2023 to FY2024 earnings estimates marginally downwards, following the release of CICT&rsquo s latest results.
The brokerage nonetheless maintained &ldquo add&rdquo on the trust with an unchanged target price of S$2.35, noting improving rental reversions along with the continued trend of rising average funding costs.