CapitaLand  raises earnings resilience with new acquisitions 


Maybank IB said CLMT’s management continues to guide for stable operating performance underpinned by mid to high single-digit retail rental revisions into next year.

PETALING JAYA: Capitaland Malaysia Trust’s (CLMT) proposed acquisition of five high-specification industrial facilities in i-TechValley, Iskandar Puteri, Johor will have no immediate impact on the diversified real estate investment trust’s earnings, says Maybank Investment Bank Research (Maybank IB).

The research house noted that this is because the assets are still under development and are expected to be completed progressively between the first quarter of 2027 (1Q27) and 1Q28.

The RM220.8mil proposed acquisition involves five freehold, single-storey detached factories with office components, located within the Southern Industrial and Logistics Clusters in Iskandar Malaysia, acquired on a forward purchase basis from subsidiaries of AME Elite Consortium Bhd.

Upon completion, CLMT’s industrial and logistics exposure will increase from 7.9% to 11.5% of assets under management (AUM) thus strengthening its portfolio diversification.

According to Maybank IB, CLMT’s management continues to guide for stable operating performance underpinned by mid to high single-digit retail rental revisions into next year, with retail asset enhancement initiatives and tenant remixing driving occupancy and shopper traffic.

On the industrial segment, demand drivers such as the Johor-Singapore Special Economic Zone and supply chain realignment should support leasing momentum for CLMT’s expanded pipeline.

The research house said: “We maintain our earnings forecasts for this year to 2027, as the newly acquired industrial assets will only begin contributing progressively from 2027 onwards, with full-year income impact from 2028.”

CLMT’s management said its longer-term target to lift industrial exposure to 20% of AUM by 2028 also remained intact, focusing on Johor, the Klang Valley, and Penang, the research house added.

“We see this as supportive of earnings resilience and valuation over the medium term,” it said.

The research house, which has a “buy” call on CLMT, has kept its target price unchanged at 76 sen with an attractive estimated net yield of 7.6% for next year.

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