PETALING JAYA: Capitaland Malaysia Trust
’s (CLMT) latest proposed acquisition is expected to lift its earnings by 1.6% in financial year 2026 (FY26) and 1.5% in FY27, according to TA Research.
This is based on an assumption of a net property income (NPI) margin of 90% and full lease commencement by January 2026.
The trust entered into an agreement to acquire three freehold industrial properties from Rainbow Entity Sdn Bhd, a subsidiary of Bursa Malaysia-listed Gromutual Bhd, for RM72mil.
The properties are strategically located within Senai Airport City, a key industrial and manufacturing hub in the Johor-Singapore Special Economic Zone.
The acquisition will be entirely funded through bank borrowings and is targeted for completion in the second half of 2025 (2H25). TA Research has maintained its current forecasts until the transaction is finalised.
It also maintained its “buy” recommendation on the stock, with an unchanged target price 82 sen per share, based on a target yield of 6.25%.
CLMT is actively working to secure tenants for the remaining two properties.
Once fully leased, the properties are projected to generate an annual gross rental income of RM5.1mil, translating to a gross yield of 7.1%.
This yield is considered competitive, as it falls within the typical 6% to 8% rental yield range for industrial properties.
The research house said this proposed acquisition marks CLMT’s second venture into the thriving industrial sector in Johor.
TA Research viewed this acquisition positively, as it aligns with the trust’s growth strategy and diversification efforts.
Since 2024, CLMT has proposed RM280mil in industrial and logistics acquisitions, including the latest RM72mil transaction.
In February 2024, it acquired three freehold industrial factories in Nusajaya Tech Park, Johor, for RM27mil, with completion slated for 2H25.
In December 2024, it bought a freehold modern automated logistics property in Selangor for RM180mil, also set for completion in 2H25.
Upon completion of these transactions, CLMT’s portfolio will expand to 15 properties, with industrial and logistics assets increasing from 10% to 18% of its total net lettable area, reaching 4.7 million square feet.
Its industrial and logistics assets under management will also grow from 2.8% to 7.9%.
In terms of earnings impact, TA Research estimated the contribution from industrial and logistics properties to total net property income (NPI) will rise from 3.1% to 8.8%.
Assuming all ongoing acquisitions are funded through borrowings, CLMT’s gearing ratio is expected to rise from 41.3% at the end of December 2024 to 44.4%.
