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CapitaLand Mall (SG:C38U)
SGX:C38U
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CapitaLand Mall
(SGX:C38U)
Rating:73Outperform
Price Target:
S$2.50
▲(12.11%Upside)
Positive Factors
Financial Performance
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.
Retail Performance
IMM Building is being repositioned as the largest outlet mall in Singapore with 90 outlet stores, achieving committed occupancy of 100% for Phases 1 and 2 of AEI.
Tourism Impact
China tourists returning to Singapore could mean another boost to growth, which could drive the company's share price performance.
Negative Factors
Asset Divestment
CICT could consider divesting Gallileo and Main Airport Centre (MAC) in Frankfurt.
Market Risks
The key risks to our view are an economic downturn, as well as a prolonged recovery and weak sentiment.
CapitaLand Mall (C38U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$16.10B
Dividend Yield7.32%
Average Volume (3M)25.67M
Price to Earnings (P/E)16.2
Beta (1Y)0.53
Revenue Growth1.54%
EPS Growth4.48%
CountrySG
Employees646
SectorReal Estate
Sector Strength60
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.08
Shares Outstanding7,317,151,400
10 Day Avg. Volume21,816,570
30 Day Avg. Volume25,670,203
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio17.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.33Price Target Upside4.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
CapitaLand Mall Business Overview & Revenue Model
Company DescriptionCapitaLand Mall Trust (CMT), listed as C38U on the Singapore Exchange, is one of Asia's prominent real estate investment trusts focusing on retail properties. As part of CapitaLand, one of Asia's largest diversified real estate groups, CMT owns and invests in a portfolio of high-quality shopping malls strategically located in key urban and suburban areas. These properties are designed to offer a diverse mix of retail, dining, and entertainment options, attracting a wide array of consumers and retailers.
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:Feb 05, 2025
(Q4-2024)
| % Change Since: 17.49%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational performance and strategic asset management resulting in positive rental reversions and high occupancy rates. However, challenges in overseas asset valuations, debt refinancing, and rising operational costs were notable concerns. The sentiment reflects a balanced outlook with strategic plans for sustainable growth.Q4-2024 Updates
Positive Updates
Strong Portfolio Occupancy
Portfolio occupancy increased to 97.3%, with high tenant retention and rental reversion.
Positive Rental Reversion
Retail rental reversion was positive at 8.5% for 2023, with good demand from retailers.
Successful Portfolio Reconstitution
Completion of acquisitions and asset enhancements led to stable operating metrics and valuation uplift in Singapore.
Debt Management and Cost Control
Average cost of debt increased by only 10 basis points due to active cash management and refinancing strategies.
Strategic Asset Enhancements
Upgrade of IMM mall with 70% pre-commitment and plans for further assets enhancements in Singapore and overseas.
Negative Updates
Downdraft in Overseas Assets
Valuation declines in overseas assets due to expanded cap rates and geopolitical tensions, particularly in Australia and Germany.
Debt Maturity and Refinancing Needs
$1.5 billion of debt maturing in 2024, requiring refinancing efforts amid a high-interest rate environment.
Challenges in Retail Sales
Marginal decline in tenant sales towards the end of the year due to economic uncertainties and GST hikes.
High Utility Costs
Significant year-on-year increase in utility and marketing expenses by 59%.
Gallileo Vacancy and AEI Costs
Gallileo building faced downtime and extensive AEI costs impacting short-term profitability.
Company Guidance
During the CapitaLand Integrated Commercial Trust (CICT) FY 2023 Results Briefing, several key performance metrics and strategic initiatives for 2024 were highlighted. Notably, CICT achieved a portfolio occupancy rate of 97.3% and a positive rental reversion of 8.5% in 2023. Looking ahead, CICT plans to focus on revenue protection through proactive lease management and cost control, including reducing utility costs and restructuring property management agreements. Additionally, CICT is exploring new revenue streams with the completion of Clarke Quay and plans to upgrade IMM as a key regional outlet mall, already securing 70% pre-commitment in the AEI space. Financially, CICT maintained an average debt cost that increased slightly by 10 basis points, with a strategic focus on cash management and refinancing $1.5 billion of debt due in 2024. The trust plans to carefully manage gearing, ideally bringing it down to 37-38%, while also exploring potential divestments and acquisitions to optimize its portfolio.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
2.23
Price Trends
2.14
Positive
2.11
Positive
2.03
Positive
Market Momentum
0.02
Positive
63.28
Neutral
70.63
Neutral
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 2.23 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.14, and above the 200-day MA of 2.03, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 70.63 is Neutral, 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.42B | 14.94 | 5.22% | 6.81% | 3.18% | -0.50% | |
73 Outperform | $6.64B | 11.35 | 6.29% | 6.27% | ― | ― | |
73 Outperform | $16.10B | 16.18 | 6.32% | 7.32% | 1.54% | 4.48% | |
69 Neutral | S$4.44B | 19.33 | 5.08% | 5.50% | 1.49% | 5.99% | |
65 Neutral | $3.32B | 29.20 | 1.86% | 5.43% | -1.16% | -34.74% | |
54 Neutral | $1.19B | 3.64 | 0.13% | 6.72% | -2.13% | -128.06% |
* Real Estate Sector Average
Performance Comparison
SG:C38U
CapitaLand Mall
2.23
0.28
14.42%
SG:HMN
Ascott Residence
0.90
0.05
5.92%
SG:T82U
Suntec Real Estate Investment
1.17
0.05
4.65%
SG:N2IU
Mapletree Commercial
1.28
0.04
3.48%
SG:J69U
Frasers Centrepoint
2.20
0.13
6.08%
CapitaLand Mall Corporate Events
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.