Target Price: S$2.37, indicating a 22.8% upsideStock Valuation and Outlook
Share Price (as of Feb 6, 2025): S$1.93
Target Price: S$2.37, indicating a 22.8% upside
Net Asset Value (NAV) per share: S$2.12
Projected DPU for 2025-2027:
2025F: 10.9 S cents
2026F: 11.2 S cents
2027F: 11.3 S cents
Dividend Yield: 5.6% (2025F), increasing to 5.8% by 2027
PE Ratio: 16.9x (2025F).
Investment Thesis
Steady DPU Growth: Supported by positive rental reversions and strong occupancy rates.
Portfolio Expansion & AEI: With the acquisition of ION Orchard and ongoing AEIs at IMM Building and Gallileo, CICT is poised for higher rental income.
Lower Gearing & Strong Balance Sheet: Improved aggregate leverage (38.5%), stable cost of debt, and a well-managed debt maturity profile reduce financial risks.
Resilience in Retail & Office Segments: The recovery in tourist arrivals and work-from-office trends supports demand for retail and office spaces.
Conclusion: Maintaining a BUY Rating
With strong fundamentals, ongoing AEI projects, and a well-diversified portfolio, CICT remains a top choice among S-REITs. The stable cost of debt, healthy rental reversions, and strong tenant demand further reinforce its long-term growth prospects. Maintaining a BUY rating with a target price of S$2.37, CICT presents an attractive investment opportunity for those seeking stable dividends and potential capital appreciation
