CapitaLand Integrated Commercial Trust - DBS Research 2020-12-09: Biggest S-REIT At A Bargain!

CAPITALAND INTEGRATED COMM TR (SGX:C38U) | SGinvestors.io CAPITALAND INTEGRATED COMM TR (SGX:C38U)

CapitaLand Integrated Commercial Trust - Biggest S-REIT At A Bargain!




Big, cheap and fresh!



Riding the cyclical recovery trend.

  • FY21 will continue to be a year of recovery as we progressively emerge from the COVID-19 pandemic and head towards a new normal.


Imminent vaccine to normalise valuations.

  • With the rapid progress of COVID-19 vaccines, we believe that a V-shaped recovery will be the key catalyst to drive valuations close to its historical average (since it was listed) of 1.24x P/NAV.


Valuation:



Where we differ:

  • Too big to ignore. We believe that as the largest S-REIT, CapitaLand Integrated Commercial Trust will be too big to ignore. The company’s integrated commercial assets will drive synergistic value from its existing portfolio. In addition, its size offers a bigger platform and opportunity to grow with acquisitions of integrated development led by the rising global trend of live-work-play.

Key Risks to Our View:

  • The key risks to our view are an economic downturn, as well as a prolonged recovery and weak sentiment. Setbacks to vaccine distribution and new waves of the pandemic could further delay CapitaLand Integrated Commercial Trust’s recovery.



Singapore retail REIT sector report:





Rachel TAN DBS Group Research | Geraldine WONG DBS Research | Derek TAN DBS Research | https://www.dbsvickers.com/ 2020-12-09
SGX Stock Analyst Report BUY MAINTAIN BUY 2.50 UP 2.40



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