CapitaLand to step up asset sales despite $3.1b in divestments in H1

The move is expected to boost ROE.

CapitaLand is expected to continue capital recycling opportunities in the second half of the year despite already posting a whopping $3.1b in divestments in H1, according to OCBC Investment Research. 

The move is expected to provide further boost to the company’s return on equity (ROE) which clocked in at a stable 9.8% in H1 on an annualised basis, OIR added.

“We fine-tune our assumptions and also widen our RNAV discount slightly from 15% to 20% to take into account the industry and macro headwinds,” said OIR.

CapitaLand CEO Lim Ming Yan was earlier quoted in a Bloomberg interview that the government’s cooling measures may represent a fresh round of buying opportunities.

The developer’s Q2 profits rose 4.4% to $605.2m on the back of stronger performance from China and the consolidation of revenue from CapitaMall Trust (CMT), CapitaLand Retail China Trust (CRCT), and RCS Trust (RCST).

The company also sold 77 units in Singapore for $286m in H1. It also has the Pearl Banks Apartment collective sale as its only main local residential project in the pipeline.