Capitaland Investment 02 (Jun 10 - Dec 25)

[winston]

CAPITALAND LTD (CAPL SP)

Recommendation : BUY
Fair Value : SGD 4.03

SEVERAL ENCOURAGING SIGNS.

Strong growth in residential sales and handover in China given low base effects
Lodging business remains the weak point
Continued capital recycling with SGD2.7b of investments and SGD1b of divestments YTD

CapitaLand’s competitive advantage is its significant asset base and extensive market network, which has been further boosted following the completion of the Ascendas-Singbridge merger.

CapitaLand now has a core focus on Singapore, China, India and Vietnam.

Coupled with extensive design, development and operational capabilities, CapitaLand develops and manages high-quality real estate products and services.

It also has one of the largest investment management businesses in Asia with a total of six REITs and business trusts listed in Singapore and Malaysia.

The Group has grown its real estate AUM to SGD132.5b, as at 31 Dec 2020. Although the Covid-19 pandemic has impacted CapitaLand’s operations, we believe its strong balance sheet and diversified portfolio puts it in a better position to drive a recovery ahead, while capital recycling activities are also expected to resume in a more meaningful way.

Source: OCBC

[behappyalways]

CapitaLand buys out JV partner's stake in Dalian Ascendas IT Park for $103 mil
https://www.theedgesingapore.com/news/m ... rk-103-mil

[behappyalways]

CapitaLand divests partial stakes in six Raffles City developments in China in $9.6 bil deal
https://www.theedgesingapore.com/news/d ... velopments


CapitaLand sells two Tokyo malls for $520 mil, to invest $91 mil in Osaka logistics facility
https://www.theedgesingapore.com/news/p ... s-facility

[behappyalways]

CapitaLand receives overwhelming support for restructuring plan from shareholders
https://www.theedgesingapore.com/news/p ... areholders


CapitaLand sees 9.5 times earning growth to $922.2 mil for 1H21
https://www.theedgesingapore.com/capita ... 2-mil-1h21

[winston]

* CapitaLand Investment – Less is more – Initiate at Buy.

Post restructuring, CapitaLand Investment has sharpened its focus as a real estate investment manager (REIM) with S$119b AUM given the privatisation of its development segment.

Earnings visibility is clearer without the more volatile development segment (30-50% of FY18-20 revenue).

Other earnings, from management fees and real estate investment, are broadly recurring in nature.

Coupled with operational improvements and recovery from Covid-19, we expect higher core Patmi margins of c.55% in FY22-23E (vs 12-20% 5Y avg).

We initiate coverage of CLI at Buy with a 12m TP of S$3.64.

Source: GS

[behappyalways]

CLI opens on steady note, management looks to future in new economy, PERE and alternative assets
https://www.theedgesingapore.com/news/p ... ive-assets

[winston]

not vested

CapitaLand Investment Ltd (CLI SP) - Transformation augurs well for the future

CapitaLand Investment Limited (CLI) has emerged as a more nimble and resilient entity following its strategic restructuring, and we believe it would operate with a more asset-light business model with strong focus on recurring income streams.

Management has reiterated its target of achieving a funds under management (FUM) target of SGD100b by 2024, and would continue to focus on new economy assets such as logistics and data centre properties.

Although CLI’s lodging management business has been impacted by the pandemic, it has mitigated this by focusing on management and franchise contracts.

CLI had 123k lodging units under management, as at end-FY20, and management aims to grow this to 160k units by 2023.

Capital recycling would also remain as one of CLI’s key focuses, with an annual divestment target of SGD3b. BUY.

Source: OCBC

[winston]

not vested

CAPITALAND INVESTMENT LTD (CLI SP)
Recommendation : BUY
Fair Value : SGD 3.83

TRANSFORMATION AUGURS WELL FOR THE FUTURE.

More nimble and resilient business model post restructuring
Continued focus on new economy sectors and capital recycling
New senior hires to support strategic drive ahead

CapitaLand Investment Limited (CLI) has emerged as a more nimble and resilient entity following its strategic restructuring, and we believe it would operate with a more asset-light business model with strong focus on recurring income streams.

Management has reiterated its target of achieving a funds under management (FUM) target of SGD100b by 2024, and would continue to focus on new economy assets such as logistics and data centre properties.

Although CLI’s lodging management business has been impacted by the pandemic, it has mitigated this by focusing on management and franchise contracts.

CLI had 123k lodging units under management, as at end-FY20, and management aims to grow this to 160k units by 2023.

Capital recycling would also remain as one of CLI’s key focuses, with an annual divestment target of SGD3b.

Source: OCBC

[winston]

CAPITALAND INTEGRATED COMMERCIAL TRUST (CICT SP)

Recommendation : BUY
Fair Value : SGD 2.53

MORE TIME NEEDED FOR FIRMER RECOVERY.

Occupancy eased across all segments
Negative rental reversions for both retail and office
Aggregate leverage ratio increased marginally to 40.9%

CapitaLand Integrated Commercial Trust (CICT) is the largest S-REIT by market capitalisation and assets in Singapore.

It has a strong sponsor in CapitaLand Investment Limited, and its scale has been significantly enlarged following the completion of the merger with CapitaLand Commercial Trust in Oct 2020.

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.

Although CICT has been adversely impacted by the Covid-19 outbreak, we see signs of green shoots in the recovery of the macro economy and the eventual transition to an endemic era.

This positions CICT as a good proxy to the reopening theme, notwithstanding the restrictions imposed during the “Stabilisation Phase” in Singapore.

Source: OCBC

[behappyalways]

CLI sets up two new funds in Japan and South Korea totalling $688 mil
https://www.theedgesingapore.com/news/p ... ng-688-mil