凯德腾飞房地产投资信托（CLAR）：买入：定价合理的收购

Disclosures & DisclaimerThis report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it.MDDI (P) 005/01/2025 MDDI (P) 006/09/2024 MDDI (P) 004/10/2024 MDDI (P) 020/10/2024Proposed acquisition of9Tai Seng Drive data centre and 5Science Park Drive for SGD700mInitial NPI yield compares favourablywithrecent markettransactions, with potential for further rental upliftTP unchanged at SGD3.20,maintain Buy;one of our preferredREITs under coverageProposedacquisition of 9 Tai Seng Drive and 5 ScienceParkDrive:CapitalandAscendas (CLAR)announcedthe proposedacquisition of 9 Tai SengDriveand 5SciencePark Drive from its sponsor, CapitaLand Investment(CLI SP, SGD2.54, Buy),ata total agreed property value of SGD700.2m, subject to shareholder approval.Management also launched a SGD500m private placement exercise for the acquisition,with the rest tobe funded by debtat c3.0%.TheinitialNPI yield for 9 Tai Seng Driveand 5 Science Park Drive (excluding the SGD30m deferred consideration to be paid in2026)is7.1% and 6.1%,respectively. This comparesfavourablytoKeppel DCREIT’s(KDCREIT SP,SGD2.17, Buy)acquisition of Keppel SGP 7and8 atac6.5% yield andMapletree Industrial’s(MINT SP,SGD1.92, Buy)recentBPdivestmentat c5%, basedon our estimates.Taking these into account,weincreaseour earnings estimatesforCLARby 0.1%/0.4%/0.2%for2025/2026/2027, respectively.Post acquisition, gearingshould fallto 38.3% (from 38.9% as at end-March 2025).Further room to grow.5 Science Park Drive is currently fullyoccupied by e-commercegiantShopee, serving asitsregional headquarters. Although Shopee’s lease ends in2026, management indicated thatit islikely to renew and expectsac15%upliftin rents.Meanwhile, the 9 Tai Seng Drivecolocationdata centre is fully committed by digital,e-commerce,and financial services end-users.Though there are no lease expiries overthe next two years, existing leases have 2-3.5% rental escalations in place andtheasset isc30% under-rented compared to market rents ranging from SGD390-520 perkW per month,permanagement.Although thedata centre’spower capacity is notdisclosed, wethinkit iscurrentlyin the low-teens,and management indicated there ispotential to convert unutilised spaceinto data hallsand expandthe currentcapacityover thenext few years. Management also continues to be on the lookoutforfurtherdata centreopportunities in Europe and Singapore andaims todivest cSGD300m ofassetsto fund itsongoing/potentialredevelopments.Target priceunchanged at SGD3.20implying c23%upside; maintain Buy:OurDDM-basedtarget priceis unchanged at SGD3.20,and we maintain our Buy ratingas we seethe companybeing well-positioned to enjoy strong rental reversions and totake advantage of its strong balance sheet.Seepage 3 for key risks.Capitaland Ascendas REIT(CLARSP)Buy:Well-priced acquisitions ◆◆◆ PREVIOUS TARGET(SGD)3.20UPSIDE/DOWNSIDE+22.6%11,485Free float8,912BBG26RIC12/2024a12/2025e0.170.170.00.1415.25.81.15.211/24High: 2.97 Low: 2.44 Current: 2.61 Find out more78%CLAR SPCAPD.SI12/2026e12/2027e0.150.150.160.150.150.16-0.80.40.30.150.160.1617.716.915.95.96.26.51.11.21.14.84.95.02.302.803.3005/25 2Financial statementsYear to12/2024a12/2025e 12/2026e12/2027eProfit & loss summary (SGDm)Gross revenue1,5231,5621,6751,747Property expenses(473)(488)(522)(546)Net property income1050107511531200Asset management and trust expenses(99)(115)(148)(150)EBIT92596010051050Net interest expense(271)(250)(247)(249)Tax18(35)(37)(39)Core net income after tax672675721762Payment to perpetual security holders(9)(10)(11)(11)Core net income after tax (to unit holders)663666710751Net investment income (for distribution)669694744791Cash flowsummary (SGDm)Cash generated from operations94895910151053Cash flows from investing activities(62)(802)(61)(61)Cash flows from financing activities(945)318(912)(991)Net change in cash and cash equivalents(59)475422Beginning cash and cash equivalents222168643685Effect of exchange rate changes5000Cash from bank overdraft0000Cash and cash equivalents at end168643685687Balance sheet summary (SGDm)Investment properties17,02717,84917,78818,225Total non-current assets17,91918,74018,68419,131Cash and cash equivalents168643685687Total current assets350829880888Total Assets18,26919,56919,56420,018Short term borrowings980---Total currentliabilities1,521553582604Interest bearing loans & borrowings6,1357,8877,9778,038Total non-current liabilities6,4408,1928,2828,343Total Liabilities7,9608,7448,8658,947Perpetual securities299299299299Common equity10,00910,52510,40010,772Net assets10,30910,82410,69911,072Year to12/2024a12/2025e 12/2026e12/2027ey-o-y % changeRevenue3%3%7%4%Net property income3%2%7%4%Income after tax-6%0%7%6%Net investment income (fordistribution)2%4%7%6%Fully diluted EPU338%-14%5%6%Fully diluted DPU0%1%5%6%RatiosEBIT margin61%61%60%60%Debt/assets38%41%41%41%Net debt/assets35%34%34%34%(Debt + perpetual securities)/assets37%39%39%39%(Net debt + perpetual se