CAPITALAND INVESTMENT LIMITED (SGX:9CI)
CapitaLand Investment - 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.
A more resilient business model with stronger recurring income streams
- We believe CapitaLand Investment (CLI, SGX:9CI)(formerly CapitaLand prior to its restructuring) has emerged as a nimbler entity with a more resilient business model after completing its strategic restructuring in late Sep 2021.
- Post-restructuring, CapitaLand Investment has become one of the world’s largest listed real estate investment managers (REIMs), with S$119b of real estate assets under management (AUM), as at 30 Jun 2021. More than 80% of its AUM is located in Asia.
- CapitaLand Investment’s real estate funds under management (FUM) was S$83b (as at 30 Jun 2021), and this is held via six listed REITs and business trusts, and over 20 private funds. Management reiterated its target of achieving S$100b of FUM by 2024, which would help to grow its fee income and thus recurring income streams.
Focus on new economy assets and capital recycling
- Looking ahead, CapitaLand Investment would continue to target S$3b of its parent following the restructuring.
New fair value estimate of S$3.83 for CapitaLand Investment
- In order to support its strategic drive, CapitaLand Investment announced two new sum-of-the-parts (SOTP) approach to derive a fair value estimate of S$3.83 (RNAV discount of 5% offset by incorporating an ESG valuation premium given CapitaLand Investment’s ESG rating of ‘AA’).
- See
CapitaLand Investment - ESG Updates
- CapitaLand Investment leads its peers in the adoption of strong sustainability programmes, in particular to governance. It also has a majority independent board and an independent Chairman to support oversight of management. On the category of ‘Opportunities in Green Building’, CapitaLand Investment’s portfolio features a relatively highproportion of green-certified buildings relative to peers.
- According to CapitaLand Investment, it has concluded its augural Sustainability X Challenge to crowd-source the world for the best sustainability innovations as part of its 2030 Sustainability Master Plan, and has set up a S$50m CapitaLand Innovation Fund. CapitaLand Investment has also retained its listing on the 2021 Global 100 Most Sustainable Corporations in the
OCBC Research Team
OCBC Investment Research
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https://www.iocbc.com/
2021-10-06
SGX Stock
Analyst Report
3.83
SAME
3.83
