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CapitaLand Mall (SG:C38U)
SGX:C38U
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CapitaLand Mall
(SGX:C38U)
Rating:78Outperform
Price Target:
S$2.50
▲(9.17% Upside)
Positive Factors
Acquisition
CICT will gain 100% ownership of CapitaSpring after acquiring the remaining 55% stake.
Asset Enhancement Initiatives
CICT's proposed asset enhancement initiatives are expected to yield ROI of above 7% each.
Financial Performance
CICT's DPU of 5.62 S cents for 1H25 (+3.5% yoy) was above expectation.
Negative Factors
Debt
Strong performance at newly added Ion Orchard Mall and divestment proceeds used to reduce high-cost debt are key catalysts driving distribution per unit growth.
Divestment
CICT could consider divesting Gallileo and Main Airport Centre (MAC) in Frankfurt.
Gearing
The acquisition of the remaining 55% stake in CapitaSpring is expected to lift gearing by 0.4% pt to 38.3%.
CapitaLand Mall (C38U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$17.33B
Dividend Yield5.42%
Average Volume (3M)21.29M
Price to Earnings (P/E)16.8
Beta (1Y)0.52
Revenue Growth0.17%
EPS Growth8.05%
CountrySG
Employees646
SectorReal Estate
Sector Strength55
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding7,601,512,000
10 Day Avg. Volume23,611,822
30 Day Avg. Volume21,288,817
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue15.60
Enterprise Value/Gross Profit21.45
Enterprise Value/Ebitda19.16
Forecast
1Y Price Target
$2.45Price Target Upside7.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
CapitaLand Mall Business Overview & Revenue Model
Company DescriptionCapitaLand Integrated Commercial Trust (CICT) is the first and largest real estate investment trust (REIT) listed on Singapore Exchange Securities Trading Limited (SGX-ST) with a market capitalisation of S$14.0 billion as at 31 December 2020. It debuted on SGX-ST as CapitaLand Mall Trust in July 2002 and was renamed CICT in November 2020 following the merger with CapitaLand Commercial Trust. CICT owns and invests in quality income-producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore. As the largest proxy for Singapore commercial real estate, CICT's portfolio comprises 22 properties in Singapore and two in Frankfurt, Germany, with a total property value of S$22.3 billion as at 31 December 2020. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, which is a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia's largest diversified real estate groups.
How the Company Makes MoneyCapitaLand Mall Trust generates revenue primarily through rental income from its extensive portfolio of retail properties. The trust leases space to a variety of tenants, ranging from international and local retail brands to food and beverage outlets and entertainment providers. This rental income is structured through fixed leases, turnover rents, and often includes rent escalations over time. Additionally, CMT derives income from car park operations and advertising within its malls. The trust's revenue model is supported by strategic partnerships with retailers, property management services, and ongoing enhancements to its mall offerings to maintain high occupancy rates and attract foot traffic. These factors, combined with a proactive approach to asset enhancements and acquisitions, contribute significantly to its earnings.
CapitaLand Mall Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong financial performance, strategic acquisitions, and effective asset management, although there were some challenges such as slight revenue decline and flat tenant sales excluding ION.Q2-2025 Updates
Positive Updates
Record Distributable Income
Distributable income rose 12.4% year-on-year to a record $411.9 million for the first half of 2025.
DPU Increase
First half DPU increased 3.5% to a new high of $0.0562 despite an enlarged unit base, due to effective financial management and lower interest expenses.
Improved Financial Metrics
Aggregate leverage improved to 37.9%, down 0.6 percentage points from end 2024, and the average cost of debt declined to 3.4% from 3.6%.
Successful Asset Enhancements
AEIs at Gallileo and IMM Building are progressing well, with Gallileo reaching 97.7% committed occupancy and IMM's Phase 3 post-AEI occupancy at about 98.6%.
Proposed Acquisition of CapitaSpring
CICT announced the acquisition of the remaining 55% interest in CapitaSpring, with the entry yield at approximately 4.2% based on the first half 2025 NPI.
Tenant Confidence and Occupancy Rates
Overall occupancy stood at 96.3%, with tenant retention rates remaining high and rent reversion for the office portfolio at 4.8% and retail portfolio at 7.7%.
Negative Updates
Gross Revenue Slight Decline
Gross revenue came in at $787.6 million, a slight decline of 0.5% year-on-year due to the absence of income from 21 Collyer Quay.
Flat Tenant Sales Excluding ION
Tenant sales per square foot increased 17.9%, but excluding ION, tenant sales per square foot was flat.
Challenges in Retail Rent Sustainability
Retail rent reversions averaged 7.7%, with suburban malls achieving 8.8% and downtown malls 6.9%, but sustainability of these levels is questioned.
Company Guidance
In the recent CICT briefing, the company provided detailed guidance for the first half of 2025, highlighting a gross revenue of $787.6 million, representing a slight year-on-year decline of 0.5%, largely attributed to the divestment of 21 Collyer Quay. On a like-for-like basis, excluding this divestment, gross revenue grew by 1.4%, and net property income (NPI) rose by 1.7%. Distributable income climbed 12.4% to a record $411.9 million, with a first half distribution per unit (DPU) increase of 3.5% to $0.0562. The company's proactive capital management saw aggregate leverage improve to 37.9%, and the average cost of debt decreased to 3.4%. Operationally, CICT maintained a robust portfolio with an overall occupancy rate of 96.3% and a weighted average lease expiry (WALE) of 3.2 years. The company also noted positive rent reversions of 4.8% for office and 7.7% for retail portfolios, with suburban malls achieving 8.8% and downtown malls 6.9%. Tenant sales per square foot increased 17.9%, influenced by the inclusion of ION Orchard, with shopper traffic up by about 3.4%. Additionally, CICT discussed its strategic acquisition of the remaining 55% interest in CapitaSpring, emphasizing the strategic alignment with its core market in Singapore and the expected DPU accretion of 1.1% on a pro forma basis for the first half of 2025. The acquisition, valued at $1.9 billion, is set to enhance the quality and resilience of CICT's portfolio, with an entry yield of approximately 4.2%.CapitaLand Mall Financial Statement Overview
Summary
CapitaLand Mall exhibits strong financial performance with consistent revenue growth and robust profitability margins. While the EBIT margin is concerning, the overall financial health remains strong with stable leverage and healthy cash flow generation.Income Statement
CapitaLand Mall has demonstrated strong revenue growth, with a 9.98% increase from 2022 to 2023 and a consistent rise over the years. The gross profit margin remains robust at 72.7% in 2023, indicating efficient cost management. However, the EBIT margin is concerning at 0% for 2023, likely due to significant expense adjustments or non-operating costs. Despite this, the net profit margin improved to 58.8% in 2023, reflecting strong bottom-line performance driven by strategic adjustments in expenses or gains.85
Very Positive
Balance Sheet
The company's balance sheet is solid, with a debt-to-equity ratio of 0.58 in 2023, showing a well-managed leverage position. The equity ratio stands at 57.3%, indicating a healthy reliance on equity financing. Return on equity (ROE) is strong at 6.08%, reflecting efficient use of shareholder funds. However, the increase in total debt over the years could present a potential risk if not managed carefully.78
Positive
Cash Flow
CapitaLand Mall's cash flow is robust, with a free cash flow to net income ratio of 1.11 in 2023, suggesting that the company is generating sufficient cash to cover its net income. The operating cash flow to net income ratio is also strong at 1.25, indicating good cash generation from core operations. However, free cash flow has slightly decreased from 2022 to 2023, which could impact future liquidity if not reversed.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.59B | 1.58B | 1.44B | 1.31B | 745.21M |
| Gross Profit | 1.15B | 1.14B | 1.04B | 951.08M | 512.74M |
| EBITDA | 1.29B | 1.02B | 966.09M | 1.29B | 63.28M |
| Net Income | 933.68M | 862.57M | 723.37M | 1.08B | 349.82M |
Balance Sheet | |||||
| Total Assets | 25.51B | 24.74B | 24.67B | 22.74B | 22.42B |
| Cash, Cash Equivalents and Short-Term Investments | 156.36M | 140.70M | 248.40M | 365.13M | 183.62M |
| Total Debt | 8.97B | 9.50B | 9.61B | 8.19B | 8.73B |
| Total Liabilities | 9.79B | 10.34B | 10.39B | 9.05B | 9.35B |
| Stockholders Equity | 15.52B | 14.20B | 14.07B | 13.67B | 13.04B |
Cash Flow | |||||
| Free Cash Flow | 865.49M | 961.21M | 896.15M | 733.69M | 323.99M |
| Operating Cash Flow | 1.04B | 1.08B | 1.02B | 827.53M | 379.68M |
| Investing Cash Flow | -520.57M | -38.88M | -926.02M | 256.40M | -922.41M |
| Financing Cash Flow | -507.98M | -1.15B | -214.25M | -902.42M | 524.15M |
CapitaLand Mall Technical Analysis
Positive
2.29
Price Trends
2.17
Positive
2.10
Positive
2.00
Positive
Market Momentum
0.03
Negative
73.72
Negative
93.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:C38U, the sentiment is Positive. The current price of 2.29 is above the 20-day moving average (MA) of 2.23, above the 50-day MA of 2.17, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 73.72 is Negative, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:C38U.
CapitaLand Mall Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $17.33B | 16.81 | 6.41% | 5.42% | 0.17% | 8.05% | |
63 Neutral | $7.06B | 14.07 | -0.50% | 6.96% | 4.08% | -25.24% | |
| ― | $2.64B | 15.37 | 5.16% | 6.79% | ― | ― | |
| ― | $3.68B | 20.78 | 5.08% | 5.40% | ― | ― | |
| ― | $5.66B | 12.80 | 6.22% | 7.09% | ― | ― | |
| ― | $2.15B | 34.72 | 11.74% | ― | ― | ― | |
| ― | $3.03B | 31.85 | -0.32% | 5.00% | ― | ― |
* Real Estate Sector Average
Performance Comparison
SG:C38U
CapitaLand Mall
2.29
0.29
14.27%
ATTRF
Ascott Residence
0.69
0.04
6.15%
FRZCF
Frasers Centrepoint
1.76
0.37
26.62%
MPCMF
Mapletree Commercial
1.06
0.10
10.42%
SPHEF
Paragon REIT
2.80
<0.01
0.36%
SURVF
Suntec Real Estate Investment
0.96
0.08
9.09%
CapitaLand Mall Corporate Events
CapitaLand Integrated Commercial Trust Announces New Company Secretaries
Aug 8, 2025
CapitaLand Integrated Commercial Trust Management Limited has announced a change in its company secretaries, appointing Mr. Hon Wei Seng and Mr. Lee Wei Hsiung to replace Ms. Lee Ju Lin, Audrey, and Ms. Tee Leng Li, effective from August 8, 2025. This change in leadership roles may impact the administrative operations of the trust, although it does not affect the trust’s investment strategies or market operations.
The most recent analyst rating on (SG:C38U) stock is a Hold with a S$2.30 price target. To see the full list of analyst forecasts on CapitaLand Mall stock, see the SG:C38U Stock Forecast page.
CapitaLand Integrated Commercial Trust Expands Euro Medium Term Note Programme
Jun 18, 2025
CapitaLand Integrated Commercial Trust has announced the update of its Euro Medium Term Note Programme, increasing the programme limit from US$3 billion to US$7 billion. This update allows the issuance of notes in various currencies and incorporates the option to issue Australian law medium term notes, potentially enhancing CICT’s financial flexibility and market reach.
The most recent analyst rating on (SG:C38U) stock is a Buy with a S$2.45 price target. To see the full list of analyst forecasts on CapitaLand Mall stock, see the SG:C38U Stock Forecast page.
CapitaLand Integrated Commercial Trust Issues Units for Management Fee Payment
May 22, 2025
CapitaLand Integrated Commercial Trust has issued 3,044,633 units at S$2.1016 per unit to Premier Healthcare Services International Pte Ltd as part of the payment for the management fee for the first quarter of 2025. This issuance represents 50% of the base component of the management fee, with the remaining 50% to be paid in cash, increasing the total units in issue to over 7.3 billion. This move reflects CICT’s strategy to manage its financial obligations while maintaining its operational efficiency.
The most recent analyst rating on (SG:C38U) stock is a Buy with a S$2.45 price target. To see the full list of analyst forecasts on CapitaLand Mall stock, see the SG:C38U Stock Forecast page.
CapitaLand Integrated Commercial Trust Holds Annual General Meeting
May 19, 2025
CapitaLand Integrated Commercial Trust held its Annual General Meeting on April 22, 2025, at Marina Bay Sands Expo and Convention Centre. The meeting was attended by unitholders, proxies, and the board of directors, including key figures such as the Chairman and the CEO. This gathering underscores CICT’s commitment to transparency and stakeholder engagement, essential for maintaining trust and confidence in its operations and strategic direction.
The most recent analyst rating on (SG:C38U) stock is a Buy with a S$2.45 price target. To see the full list of analyst forecasts on CapitaLand Mall stock, see the SG:C38U Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.