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CapitaLand Integrated Commercial Trust C38U

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Morningstar’s Analysis

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Economic Moat


Capital Allocation


CICT Divests Remaining 50% Stake in One George Street for SGD 641 Million; Maintain FVE at SGD 2.66

Xavier Lee Equity Analyst

Analyst Note

| Xavier Lee |

CapitaLand Integrated Commercial Trust, or CICT, is divesting One George Street for SGD 1,281.5 million, of which its 50% stake equates to SGD 640.7 million and net proceeds, after repaying debt and related fees, will be SGD 344.8 million. The sale is expected to be completed in December 2021 and the selling price represents a 14.2% premium from its fiscal 2020 year-end valuation of SGD 1,122 million. Management expects the proceeds to provide greater financial flexibility to repay debt and fund growth opportunities. We have assumed that the proceeds will be used for debt repayment in the near term and subsequently redeployed into higher yielding opportunities in future years. We do not expect a huge change in distribution per unit as the decrease in distribution from joint ventures would be offset by savings on its interest expense and income from the subsequent redeployment of the proceeds. We updated our model accordingly and retain our fair value estimate of SGD 2.66 per unit. The transaction does not alter our narrow economic moat rating and stable moat trend on the trust.

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Company Profile

Business Description

CapitaLand Integrated Commercial Trust, or CICT, was established following the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust that was effective in October 2020. The trust has a diversified portfolio of 24 properties, which includes offices (mainly in the Central Business District), retail malls (includes urban and suburban malls), and integrated development. Most of its properties are located in Singapore except for two offices that are in Frankfurt, Germany. The trust is externally managed by CapitaLand Integrated Commercial Trust Management Limited, and parent CapitaLand retains a 29% stake in CICT.

168 Robinson Road, No. 30-01 Capital Tower
Singapore, 068912, Singapore
T +65 67132888
Sector Real Estate
Industry REIT - Retail
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type
Employees 665