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CICT' s diversified portfolio keeps it resilient while waiting for reopening
With the exception of UOB Kay Hian Research, analysts have kept their calls and target prices for CapitaLand Integrated Commercial Trust (CICT) unchanged following its 1HFY2021 ended June results release on July 28.In a July 29 research note, UOB Kay Hian analyst Jonathan Koh maintained his " buy" call while raising his target price from $2.42 to $2.50.
His higher target price reflects an increased 2022 distribution per unit (DPU) forecast by 3.9% due to lower cost of debt assumptions. For the 1HFY2021, CICT' s average cost of debt improved 0.7 percentage points to 2.4% after it refinanced existing borrowings.
Koh is upbeat on CICT' s prospects, stating that the trust " provides a diversified play on the re-opening of the domestic economy" , given its portfolio which spans offices, malls and integrated developments.
The way he sees it, the Singapore government' s target vaccination rate of 75% by October will pave the way for social distancing measures to be eased in the 4Q.
He is also positive on CICT' s CapitaSpring development, which has a committed occupancy of 61.8%, increasing from 50% the previous quarter. " Committed leases will start contributing progressively from 1H2022," Koh remarks.
For CGS-CIMB Research analysts Lock Mun Yee and Eing Kar Mei, CICT' s diversified portfolio boosts its resilience. " We believe CICT is well placed to benefit from a macro recovery given its diversified and stable earnings profile," they explain in a July 29 note.
While the trust' s 1HFY2021 DPU of 5.18 cents was in line with their forecasts, Lock and Eing highlight that its retail segment continues to face headwinds.
In the 1HFY2021, CICT renewed and leased 0.54 million square feet of retail space with a -9.1% reversion, although the decline rate slowed in 2Q. " We anticipate the negative reversion to persist as tenants continue to adapt to a post-Covid-19 world," the analysts say.
They have kept their " add" rating for CICT with an unchanged target price of $2.56.
For Lock and Eing, potential re-rating catalysts include more clarity on its asset enhancement and redevelopment plans, while downside risks include slower-than-expected portfolio value creation and slower rental recovery outlook.
Maybank Kim Eng' s Chua Su Tye also maintainedhis " buy" call and target price of $2.55 for CICT after its 1HFY2021 results came in line with his estimates.
In a July 28 note, Chua notes that CICT' s valuations at 5% dividend yield and one time P/B are undemanding versus history and peers.
Similar to Koh, Chua holds an optimistic view that a stronger 4Q recovery lies ahead given the accelerated pace of the vaccine roll-out, which should improve CICT' s retail performance. " However, expiring leases at Funan in its first renewal cycle in FY2022-2023 could cap growth upside," he cautions.
He also notes that CICT' s office portfolio occupancy dipped slightly to 93% mainly due to the anchor tenant lease expiry for Asia Square Tower 2 in Singapore.
Nonetheless, Chua views that the risk-reward balance for CICT remains " favourable" , given rental waivers will likely taper down and negative rental reversions are expected to ease further into 2H2021.
" Growth levers from its sponsor' s pipeline, AEIs and value-accretive redevelopment plans are near to medium term catalysts that could support DPU upside," Chua adds.
Meanwhile, RHB Group Research' s Vijay Natarajan has maintained his " neutral" call and target price of $2.10.
In contrast to CGS-CIMB and Maybank Kim Eng, CICT' s 1HFY2021 results " slightly missed" Natarajan' s forecasts, given the rent relief offered in the 2Q. " More rent relief is expected to be granted in 3Q before Singapore' s expected transition to a new normal of living with an endemic Covid-19," he comments in a July 29 note.
He notes that CICT is currently trading at 1.1 times P/B, which he views as a fair valuation.
As at 3.15pm, units in CICT are 3 cents or 1.42% higher at $2.14.
CICT posts H1 DPU of 5.18 Singapore cents manager still sees interest for retail space
CAPITALAND Integrated Commercial Trust CapLand IntCom T: C38U +0.48% (CICT), formerly known as CapitaLand Mall Trust, has posted a 75-per-cent increase in distribution per unit (DPU) to 5.18 Singapore cents for the first half ended June 30, from 2.96 cents for the year-ago period.
The increase was largely driven by contribution from CapitaLand Commercial Trust (CCT) assets and 100 per cent contribution from Raffles City Singapore, following the merger with CCT in Q4 2020. The H1 DPU will be paid out on Sept 9.
At a briefing following the release of the results, Tony Tan, chief executive of CICT' s manager, said the Reit also sees good demand for its retail spaces.
&ldquo Despite the situation we witness on the retail front, we continue to see interest for retailers to look at new store openings, both in downtown and suburban (areas),&rdquo he said. &ldquo By and large, a lot of retailers still think brick-and-mortar is part and parcel of their entire retail chain and strategy.&rdquo
Gross revenue for the half-year period more than doubled to S$645.7 million, from S$318.4 million a year ago, on the back of the enlarged portfolio.
Net property income of S$472.2 million was also more than double the S$216.4 million for the year-ago period.
The increase comes despite the granting of S$18.9 million of rental waivers in H1 2021 for tenants affected by Covid-19, the manager said in a bourse filing on Wednesday morning.
" The operational challenges arising from the evolving pandemic situation have affected our business as well as our tenants," said Mr Tan. " In view of persisting market uncertainty, we will continue to be agile and flexible in managing our portfolio."
Distributable income more than trebled to S$335.9 million for the half-year period, from S$109.7 million a year ago.
This was boosted by the absence of the retention of S$46.4 million of income available for distribution in H1 2020, in view of the challenging operating environment due to the Covid-19 pandemic.
CICT&rsquo s key financial indicators remained healthy, with aggregate leverage at 40.5 per cent as at June 30. The average cost of debt was maintained at 2.4 per cent, while the average term to maturity was 4.3 years.
Meanwhile, its committed portfolio occupancy stood at 94.9 per cent as at June 30. The manager said around a million square feet of new leases and renewals were signed in H1. Some 7.2 per cent of retail leases and 3.9 per cent of office leases by portfolio gross rental income remain due in 2021.
While CICT&rsquo s retail rental reversion was negative 9.1 per cent for H1 as Covid-19 restrictions weighed on both consumer and retailer sentiment, Mr Tan dismissed the figure as a &ldquo lagging&rdquo indicator.
The leading indicator, he said, was tenant sales. &ldquo If our tenants are able to do so well, improve by 30 to 50 per cent in terms of sales in the new environment, actually we&rsquo re back to square one for an effective rent basis. That&rsquo s the way to look at it.&rdquo
The way Mr Tan sees it, Singapore&rsquo s improving vaccination rates could be a shot in the arm for the retail sector.
&ldquo We are probably in very good shape vis-a-vis countries around the world. That will be a good confidence booster for both foreign investors as well as the local retailers who are thinking about their expansion footprint,&rdquo he said.
Good results & increase in DPU. Expect it can move to $2.20 level in coming weeks. Stay vested.
CICT posts H1 DPU of 5.18 S cents as revenue doubles post-merger
CapitaLand Integrated Commercial Trust (CICT), formerly known as CapitaLand Mall Trust, has posted a 75 per cent increase in distribution per unit (DPU) to 5.18 Singapore cents for the first half ended June 30, 2021 from 2.96 cents for the year-ago period.The increase was largely driven by contribution from CapitaLand Commercial Trust (CCT) assets and 100 per cent contribution from Raffles City Singapore, following the merger with CCT in Q4 2020.
Gross revenue more than doubled to S$645.7 million, from S$318.4 million a year ago, on the back of the enlarged portfolio.
Net property income of S$472.2 million was more than double the S$216.4 million for the year-ago period.
The increase comes despite the granting of S$18.9 million of rental waivers in H1 2021 for tenants affected by Covid-19, the manager said in a bourse filing on Wednesday morning.
" The operational challenges arising from the evolving pandemic situation have affected our business as well as our tenants," said Tony Tan, chief executive officer of the manager. " In view of persisting market uncertainty, we will continue to be agile and flexible in managing our portfolio."
Distributable income more than trebled to S$335.9 million for the half-year period, from S$109.7 million a year ago.
This was boosted by the absence of the retention of S$46.4 million of income available for distribution in H1 2020 in view of the challenging operating environment due to the Covid-19 pandemic.
The H1 DPU will be paid out on Sept 9.
Units of CICT closed 0.5 per cent or S$0.01 higher at S$2.10 on Tuesday.
the parent now lui pa pa. will benefits the children
Can easily go above 2.20 once more restrictions be removed. Confirmed reopening to be started in mid-July. .
Loaded more and keep. Next month dividends should be super good. 👍 👍
Now 2.17 liao. Next week, more surge is on the way througout 21 June (Mon) when dining in is opened!
Stocky901 ( Date: 03-Jun-2021 17:59) Posted:
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How to enjoy when it surged to 2.10 from 2.02? Must work harder ok? 😞 😓 😥 😰 😨
Isolator ( Date: 28-May-2021 16:42) Posted:
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Short to enjoy...
Haha. Good one.Thx. Starship!
Starship ( Date: 28-May-2021 12:55) Posted:
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Yes, during his sleazy playboy years.
Which are all over the news..................
Which are all over the news..................
hokpin ( Date: 28-May-2021 11:31) Posted:
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Haha. Starship. Is this guy a young Trump, I mean Trump when he was young?
Starship ( Date: 28-May-2021 11:26) Posted:
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Trump agrees ........................... 
bxylqwan ( Date: 28-May-2021 11:09) Posted:
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Way too cheap to ignore.
Heading upwards on good volume
Adrianinsing ( Date: 28-May-2021 11:07) Posted:
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Today MASSIVE VOLUME
Super undervalued REIT... Can buy on dips slowly.. Long to huat. ☺ ️
EXPECTING INCREASE & FAT DIVIDEND ANNOUNCEMENT FOR JULY SOON. 😀
Oh izzit? No wonder lah....
Lobster ( Date: 25-May-2021 12:33) Posted:
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