CapLand IntCom T    Last:2.27    -0.01

CapitaLand Integrated Commercial Trust s(SGX:C38U)

Dividend well supported this counter. No worry lah!

 

NOTHING U CAN DO,CAN U STOP THE RIGHT? IF PPL KNOW THEY GOING TO ISSUE RIGHT,WHO WILL BUY

 

strange,. u guys seem to be very happy that CICT offer private placement to institutional investors at a discount  :)

U not angry that u as a shareholder of CICT see those rich investors getting the same share as u but at a discount to NTA but u are not entitled to the same priviledge?? hmm..
 

Ling9345      ( Date: 07-Dec-2021 22:15) Posted: Don't use Sabana to compare, this two is different management U can see how capitaland doing

 

yes agree with u... go ask sabana laksaman

Goldblade      ( Date: 07-Dec-2021 21:41) Posted: No wonder Sabana Reit is shit. You Sabana people are going around always spewing nonsense about other reit when Sabana is one of the worse performing counters even with all your hype.  lukewong82      ( Date: 07-Dec-2021 20:36) Posted: Then the management deserves to be grilled .. why they undercut share holders' interest by placing to institutional investors at a sizeable discount from the NTA and trading price?  I think if there is a need to convey an EGM, shareholders sure vote it down one but too bad, no need EGM. Once they can do this to shareholders, they can do it again.. U look at Sabana Reits, the management got roasted by shareholders for wanting to offer Sabana reit shares at a discount to ESR :)

 

Xmas & CNY sales is here today. Buying more for dividend gifts!

invest8      ( Date: 07-Dec-2021 23:31) Posted: Shopping bag ready, hope able to buy some great bargains tomorrow. Festive seasons is here, it' s shopping time!

 

Shopping bag ready, hope able to buy some great bargains tomorrow.
Festive seasons is here, it' s shopping time! 

 

Don't use Sabana to compare, this two is different management U can see how capitaland doing

 

No wonder Sabana Reit is shit. You Sabana people are going around always spewing nonsense about other reit when Sabana is one of the worse performing counters even with all your hype. 

lukewong82      ( Date: 07-Dec-2021 20:36) Posted: Then the management deserves to be grilled .. why they undercut share holders' interest by placing to institutional investors at a sizeable discount from the NTA and trading price?  I think if there is a need to convey an EGM, shareholders sure vote it down one but too bad, no need EGM. Once they can do this to shareholders, they can do it again.. U look at Sabana Reits, the management got roasted by shareholders for wanting to offer Sabana reit shares at a discount to ESR :) PhillipTan      ( Date: 07-Dec-2021 12:49) Posted: Short term, it will tank due to dilution But there will be shareholders, who may use this opportunity to add more at a lower price to negate their personal dilution And it will slowly go back up again Just take AREIT as an example, they do like easily 7 PPs or even more, before they do a rights issue But if you look at the ten year movement of AREIT share price (talking about longer term investment), their share price has been going up steadily from $1 plus to $3 plus (Currently slightly below $3 due to Omicron woes) If it really increases the NAV and DPU in the long run, I think it should be a good thing The bad thing is existing shareholders like us can' t get it cheap, so it kind of feels frustrating especially when the price dips because of the PP too Long term investors usually won' t lose in REIT investment, but the short term investors may feel the crunch due to the PP

 

This is not the first Right and also not the last Right , take it easy

 

If the management can put shareholders 2nd and place Institutional investors first now, they can do it next time again..:)

They are not shareholders friendly ... 

PhillipTan      ( Date: 07-Dec-2021 12:51) Posted: Analysts think this is good and the price should go up again So, if you agree with what is said, you may also consider taking in more when it dips DYODD though   PhillipTan      ( Date: 07-Dec-2021 09:29) Posted: CGS-CIMB raises target price of CICT to S$2.57 after Sydney acquisitions CapitaLand Integrated Commercial Trust&rsquo s (CICT) foray into Australia through its acquisition of 2 Sydney office buildings for A$330.7 million (S$317.6 million) is expected to boost portfolio diversification and enhance income resilience, noted analysts.  CGS-CIMB on Friday (Dec 3) raised its target price on CICT to S$2.57 from S$2.56. It has also reiterated its &ldquo add&rdquo call on the real estate investment trust (Reit).  The target price of S$2.57 implies an upside of 25.4 per cent from CICT&rsquo s closing price of S$2.05 on Monday (Dec 6). The counter was trading 0.49 per cent or S$0.01 lower at the time. CGS-CIMB expects the move to boost portfolio diversification, as well as provide an uplift to the Reit' s distribution per unit (DPU) and adjusted net asset value per unit.  In a research note dated Dec 3, the research team cut its estimates for CICT' s FY2021 DPU slightly, while raising its DPU estimates for FY2022-2023 by 1.54 to 1.86 per cent to factor in the acquisition. " We believe CICT is well-placed to benefit from a macro recovery given its diversified and stable earnings profile," CGS-CIMB said. RHB has adjusted its DPU estimates for CICT by 0 to 1 per cent for FY2021-2023, after factoring in the Reit&rsquo s acquisitions and divestments. RHB has maintained &ldquo neutral&rdquo on CICT, with a target price of S$2.22, which represents an upside of 8.3 per cent. RHB analyst Vijay Natarajan noted that while the latest acquisitions are yield accretive, they come with considerable near-term lease expiries and income support. Meanwhile, Maybank Kim Eng (MKE) expects DPU to improve by 20 per cent on the year for FY2021, and 6 per cent year on year for FY2022 due to lower rental rebates to tenants and lower borrowing costs for CICT.  MKE also projects negative retail rental reversions to moderate in FY2021-2022 due to stronger tenant sales, especially for suburban malls which have been more resilient. Meanwhile, net property income contributions from office properties will recover in 2022. MKE said that CICT&rsquo s valuations are compelling for now, with a 5.6 per cent FY2022 dividend yield and a price-to-book ratio of 1 time, versus its history and peers. It has also maintained &ldquo buy&rdquo on the counter, with a target price of S$2.55, representing an upside of 24.4 per cent.  The office assets at 66 Goulburn Street and 100 Arthur Street will enable CICT to leverage Sydney' s rejuvenation initiatives, suggesting longer-term rental upside, both CGS-CIMB and MKE noted.  Plans to raise 100 Arthur Street' s current 4-star energy rating under the National Australian Built Environment Rating System to a 5-star rating should also boost CICT' s environmental, social and corporate governance initiatives in the long term, CGS-CIMB added. MKE analyst Chua Su Tye expects an absence of new supply till Q3 2022 in North Sydney to cushion occupancies and rents in the near term for CICT.  That being said, while CICT&rsquo s management expects deal flow to pick up from its Australian market entry, MKE&rsquo s research team is &ldquo less sanguine&rdquo given the Reit&rsquo s slow pace to scale its assets under management in Germany. CICT, when it was known as CapitaLand Commercial Trust, acquired a majority stake in a prime Frankfurt property known as Gallileo for 342.7 million euros (S$548.3 million) in 2018. It also acquired a majority stake in a Frankfurt multi-tenanted office building called Main Airport Center, for 133.4 million euros in 2019.  The Sydney acquisitions are expected to be completed in Q1 2022. Post-acquisition, CICT' s overall portfolio property value will increase by 3 per cent to S$22.4 billion. Some 93 per cent of the enlarged portfolio by property value will be based in Singapore, with 4 per cent in Germany and 3 per cent in Australia.

 

Then the management deserves to be grilled .. why they undercut share holders' interest by placing to institutional investors at a sizeable discount from the NTA and trading price? 

I think if there is a need to convey an EGM, shareholders sure vote it down one but too bad, no need EGM.

Once they can do this to shareholders, they can do it again..

U look at Sabana Reits, the management got roasted by shareholders for wanting to offer Sabana reit shares at a discount to ESR :)

PhillipTan      ( Date: 07-Dec-2021 12:49) Posted: Short term, it will tank due to dilution But there will be shareholders, who may use this opportunity to add more at a lower price to negate their personal dilution And it will slowly go back up again Just take AREIT as an example, they do like easily 7 PPs or even more, before they do a rights issue But if you look at the ten year movement of AREIT share price (talking about longer term investment), their share price has been going up steadily from $1 plus to $3 plus (Currently slightly below $3 due to Omicron woes) If it really increases the NAV and DPU in the long run, I think it should be a good thing The bad thing is existing shareholders like us can' t get it cheap, so it kind of feels frustrating especially when the price dips because of the PP too Long term investors usually won' t lose in REIT investment, but the short term investors may feel the crunch due to the PP   lukewong82      ( Date: 07-Dec-2021 11:47) Posted: Well, market will decide :) u look at the opening price now...$2.02. And u know the answer whether is good or bad for existing shareholder

 

Advance dividend declared 0.048 cents Ex date 14 Dec Pay date 28 Jan

 

Analysts think this is good and the price should go up again
So, if you agree with what is said, you may also consider taking in more when it dips

DYODD though
 

PhillipTan      ( Date: 07-Dec-2021 09:29) Posted: CGS-CIMB raises target price of CICT to S$2.57 after Sydney acquisitions CapitaLand Integrated Commercial Trust&rsquo s (CICT) foray into Australia through its acquisition of 2 Sydney office buildings for A$330.7 million (S$317.6 million) is expected to boost portfolio diversification and enhance income resilience, noted analysts.  CGS-CIMB on Friday (Dec 3) raised its target price on CICT to S$2.57 from S$2.56. It has also reiterated its &ldquo add&rdquo call on the real estate investment trust (Reit).  The target price of S$2.57 implies an upside of 25.4 per cent from CICT&rsquo s closing price of S$2.05 on Monday (Dec 6). The counter was trading 0.49 per cent or S$0.01 lower at the time. CGS-CIMB expects the move to boost portfolio diversification, as well as provide an uplift to the Reit' s distribution per unit (DPU) and adjusted net asset value per unit.  In a research note dated Dec 3, the research team cut its estimates for CICT' s FY2021 DPU slightly, while raising its DPU estimates for FY2022-2023 by 1.54 to 1.86 per cent to factor in the acquisition. " We believe CICT is well-placed to benefit from a macro recovery given its diversified and stable earnings profile," CGS-CIMB said. RHB has adjusted its DPU estimates for CICT by 0 to 1 per cent for FY2021-2023, after factoring in the Reit&rsquo s acquisitions and divestments. RHB has maintained &ldquo neutral&rdquo on CICT, with a target price of S$2.22, which represents an upside of 8.3 per cent. RHB analyst Vijay Natarajan noted that while the latest acquisitions are yield accretive, they come with considerable near-term lease expiries and income support. Meanwhile, Maybank Kim Eng (MKE) expects DPU to improve by 20 per cent on the year for FY2021, and 6 per cent year on year for FY2022 due to lower rental rebates to tenants and lower borrowing costs for CICT.  MKE also projects negative retail rental reversions to moderate in FY2021-2022 due to stronger tenant sales, especially for suburban malls which have been more resilient. Meanwhile, net property income contributions from office properties will recover in 2022. MKE said that CICT&rsquo s valuations are compelling for now, with a 5.6 per cent FY2022 dividend yield and a price-to-book ratio of 1 time, versus its history and peers. It has also maintained &ldquo buy&rdquo on the counter, with a target price of S$2.55, representing an upside of 24.4 per cent.  The office assets at 66 Goulburn Street and 100 Arthur Street will enable CICT to leverage Sydney' s rejuvenation initiatives, suggesting longer-term rental upside, both CGS-CIMB and MKE noted.  Plans to raise 100 Arthur Street' s current 4-star energy rating under the National Australian Built Environment Rating System to a 5-star rating should also boost CICT' s environmental, social and corporate governance initiatives in the long term, CGS-CIMB added. MKE analyst Chua Su Tye expects an absence of new supply till Q3 2022 in North Sydney to cushion occupancies and rents in the near term for CICT.  That being said, while CICT&rsquo s management expects deal flow to pick up from its Australian market entry, MKE&rsquo s research team is &ldquo less sanguine&rdquo given the Reit&rsquo s slow pace to scale its assets under management in Germany. CICT, when it was known as CapitaLand Commercial Trust, acquired a majority stake in a prime Frankfurt property known as Gallileo for 342.7 million euros (S$548.3 million) in 2018. It also acquired a majority stake in a Frankfurt multi-tenanted office building called Main Airport Center, for 133.4 million euros in 2019.  The Sydney acquisitions are expected to be completed in Q1 2022. Post-acquisition, CICT' s overall portfolio property value will increase by 3 per cent to S$22.4 billion. Some 93 per cent of the enlarged portfolio by property value will be based in Singapore, with 4 per cent in Germany and 3 per cent in Australia.

 

Short term, it will tank due to dilution
But there will be shareholders, who may use this opportunity to add more at a lower price to negate their personal dilution
And it will slowly go back up again

Just take AREIT as an example, they do like easily 7 PPs or even more, before they do a rights issue
But if you look at the ten year movement of AREIT share price (talking about longer term investment), their share price has been going up steadily from $1 plus to $3 plus
(Currently slightly below $3 due to Omicron woes)

If it really increases the NAV and DPU in the long run, I think it should be a good thing
The bad thing is existing shareholders like us can' t get it cheap, so it kind of feels frustrating especially when the price dips because of the PP too
Long term investors usually won' t lose in REIT investment, but the short term investors may feel the crunch due to the PP
 

lukewong82      ( Date: 07-Dec-2021 11:47) Posted: Well, market will decide :) u look at the opening price now...$2.02. And u know the answer whether is good or bad for existing shareholders RedAnt      ( Date: 07-Dec-2021 11:04) Posted: I dun think it a total bad news for existing shareholders. Reason:- 01 As mention by other, it cheaper and faster to do private placement. 02 The current gearing ratio is about 40.6%. If need to take bank loan, it will push toward the 45% limit. Thus, reduce any chances for future  acquisition. 03 If take bank loan, with the interest rate expected to raise in 2022, less money for distribution. 04 The  adjusted net asset value per unit would increase by 1.5 per cent 05 The distribution per unit (DPU) after the acquisition of the two office bulidings would be 10.54 Singapore cents, from 10.23 cents, according to pro forma estimates. This translates to pro forma DPU accretion of 3.1 per cent. For short term investor, it will be bad luck as stock price will drop. However, for long term investor, I dun think it much a bad news or there something that I miss out. Maybe, someone can point it out.

 

thanks for sharing
but i supposed price will tank due to PP, dilution liao
 

PhillipTan      ( Date: 07-Dec-2021 09:31) Posted: CICT proposes private placement to raise at least S$200m CapitaLand Integrated Commercial Trust' s (CICT) manager on Tuesday (Dec 7) proposed a private placement of about 103.6 million new units at an issue price of between S$1.930 and S$1.981 per new unit to raise at least S$200 million in gross proceeds. In a bourse filing, the manager said that about S$150 million, or 75 per cent, of the proceeds will be used to partially finance the trust' s proposed acquisitions of 2 office buildings in Sydney, Australia. Some S$45.9 million, or 23 per cent, of the proceeds will partially fund potential acquisitions in Singapore and other developed markets, as well as associated costs. The remaining S$4.1 million, or 2 per cent, will be used to pay the estimated transaction-related expenses incurred by the private placement. The issue price range of between S$1.930 and S$1.981 per new unit represents an estimated discount of between 3.7 per cent and 6.1 per cent to the volume-weighted average price (VWAP) of S$2.0561 per unit for trades done on the preceding market day on Monday (Dec 6) and up to the time the placement agreement was signed on Tuesday. Based on an adjusted VWAP of S$2.0076 per unit for trades done on Dec 6, the issue price range represents an approximate discount of between 1.3 per cent and 3.9 per cent. The adjusted VWAP subtracts an estimated advanced distribution of about S$0.0485. The proposed deal is expected to provide accretion in CICT' s distribution per unit (DPU) of 1.9 per cent, if the acquisitions were completed on Jan 1, 2021, on a pro forma H1 2021 basis. This value is based on the trust' s H1 2021 annualised DPU and assuming the divestment of 50 per cent of its interest in One George Street had been completed on Jan 1, 2021. The pro forma aggregate leverage of CICT is expected to be about 40.2 per cent, based on the funding mix of debt, divestment proceeds and equity. For illustrative purposes, the adjusted net asset value per unit would increase by 1.5 per cent on a pro forma H1 2021 basis had the acquisitions and the divestment of CICT' s stake in One George Street been completed on Jun 30, 2021. The manager has proposed an advanced distribution for the period from Jul 1 to the day immediately prior to the date on which the new units related to the private placement are issued. The manager expects to issue and list the new units on Dec 16. After the advanced distribution, the next distribution will comprise CICT' s distributable income starting from the day the new units are issued to Dec 31. Semi-annual distributions will then resume. JPMorgan and UOB are the joint bookrunners and underwriters for the placement. The private placement will be made to eligible institutional, accredited and other investors. The manager believes that the private placement will be beneficial to CICT' s unitholders as it will help to bring the trust in line with its value creation through portfolio reconstruction. With the reopening of Sydney, unitholders will also benefit from recovery potential. The trust called for a trading halt on Tuesday, before the market opened. Units of the counter closed at S$2.05, down S$0.01 or 0.5 per cent, on Monday.

 

Well, market will decide :)

u look at the opening price now...$2.02. And u know the answer whether is good or bad for existing shareholders

RedAnt      ( Date: 07-Dec-2021 11:04) Posted: I dun think it a total bad news for existing shareholders. Reason:- 01 As mention by other, it cheaper and faster to do private placement. 02 The current gearing ratio is about 40.6%. If need to take bank loan, it will push toward the 45% limit. Thus, reduce any chances for future  acquisition. 03 If take bank loan, with the interest rate expected to raise in 2022, less money for distribution. 04 The  adjusted net asset value per unit would increase by 1.5 per cent 05 The distribution per unit (DPU) after the acquisition of the two office bulidings would be 10.54 Singapore cents, from 10.23 cents, according to pro forma estimates. This translates to pro forma DPU accretion of 3.1 per cent. For short term investor, it will be bad luck as stock price will drop. However, for long term investor, I dun think it much a bad news or there something that I miss out. Maybe, someone can point it out.

 

I dun think it a total bad news for existing shareholders. Reason:-

01 As mention by other, it cheaper and faster to do private placement.
02 The current gearing ratio is about 40.6%. If need to take bank loan, it will push toward the 45% limit. Thus, reduce any chances for future  acquisition.
03 If take bank loan, with the interest rate expected to raise in 2022, less money for distribution.
04 The  adjusted net asset value per unit would increase by 1.5 per cent
05 The distribution per unit (DPU) after the acquisition of the two office bulidings would be 10.54 Singapore cents, from 10.23 cents, according to pro forma estimates. This translates to pro forma DPU accretion of 3.1 per cent.

For short term investor, it will be bad luck as stock price will drop. However, for long term investor, I dun think it much a bad news or there something that I miss out. Maybe, someone can point it out.
 

 

this is definitely a bad news for EXISTING shareholders. No need to convey EGM?  I' m sure many angry shareholders will vote No. 

des_khor      ( Date: 07-Dec-2021 09:35) Posted: Why all these REITs always issue at discount for outsider instead of existing shareholders one ah ?

 

Because it is cheaper, fee-wise I suppose

Using A-REIT as an example
Their last rights issue in Nov' 20, the fees was approx $15m for an amount of $1.2b
Whereas for one of the more recent private placement for $420m in May' 21, the fees was $3.8m

$420m x 3 = $1.26b
$3.8m x 3 = $11.4m
Compared to $15m for $1.2b

Secondly, it is much faster to do private placements when they need to raise cash urgently
Such as when some property goes on sale, they may not have the luxury of time to do a rights issue which may take weeks to finish

That' s my guess
 

des_khor      ( Date: 07-Dec-2021 09:35) Posted: Why all these REITs always issue at discount for outsider instead of existing shareholders one ah ?

 

Why all these REITs always issue at discount for outsider instead of existing shareholders one ah ?