Company Coverage
CapitaLand Malaysia Trust (CLMT MK): Robust Enquiries For i-TechValley Assets
BUY (Maintained)
Current price:
Target price:
Upside:
RM0.585
RM0.80
+36.8%
Analyst
Highlights
- CLMT continues to look for opportunities to expand its industrial portfolio in Johor, supported by improving cross-border connectivity, incentives under the JS-SEZ, and CapitaLand’s established business network in Singapore.
- We came away from the site visit with a positive view on the leasing prospects for i-TechValley, supported by a robust pipeline of enquiries. The assets are expected to generate a net yield of 6.0-6.5%, with rental rates of RM2.50-2.80psf.
- Maintain BUY with an unchanged target price of RM0.80. CLMT remains one of our top picks, offering attractive yields of 8.9% and 9.3% for 2026 and 2027 respectively.
Analysis
- TechValley a key asset to watch for in 2027. We conducted a site visit to CLMT’s Johor industrial locations at Nusajaya Tech Park (NTP), Senai Airport City (SAC) and i-TechValley. Recall that in Dec 25, CLMT entered into a forward-purchase agreement to acquire five detached factories in i-TechValley from subsidiaries of AME Elite for RM220.8m, with a total built-up area of about 524,000sf and progressive completion targeted from 1Q27 to 1Q28. The forward-purchase arrangement appears favourable on hindsight as CLMT had locked in the acquisition price amid rising land and construction costs, while the scarcity of remaining land within i-TechValley should also support demand.
- Leasing enquiries for i-TechValley remain robust, mainly from high-tech manufacturing and semiconductor related companies looking to expand from Singapore into Johor. Enquiries are supported by Capitaland’s established industrial network in Singapore, where it works with EDB Singapore and industry associations. However, we gather that prospective tenants generally prefer facilities that are immediately available, which makes it more difficult to secure firm commitments while the factories are still under construction. Nevertheless, CLMT remains confident in securing tenants once the facilities are completed, at rental rates of RM2.50-2.80psf, which would imply a gross yield of >7.3% and net yield of 6.0-6.5%.
Highlights
- CLMT continues to look for opportunities to expand its industrial portfolio in Johor, supported by improving cross-border connectivity, incentives under the JS-SEZ, and CapitaLand’s established business network in Singapore.
- We came away from the site visit with a positive view on the leasing prospects for i-TechValley, supported by a robust pipeline of enquiries. The assets are expected to generate a net yield of 6.0-6.5%, with rental rates of RM2.50-2.80psf.
- Maintain BUY with an unchanged target price of RM0.80. CLMT remains one of our top picks, offering attractive yields of 8.9% and 9.3% for 2026 and 2027 respectively.
Analysis
- TechValley a key asset to watch for in 2027. We conducted a site visit to CLMT’s Johor industrial locations at Nusajaya Tech Park (NTP), Senai Airport City (SAC) and i-TechValley. Recall that in Dec 25, CLMT entered into a forward-purchase agreement to acquire five detached factories in i-TechValley from subsidiaries of AME Elite for RM220.8m, with a total built-up area of about 524,000sf and progressive completion targeted from 1Q27 to 1Q28. The forward-purchase arrangement appears favourable on hindsight as CLMT had locked in the acquisition price amid rising land and construction costs, while the scarcity of remaining land within i-TechValley should also support demand.
- Leasing enquiries for i-TechValley remain robust, mainly from high-tech manufacturing and semiconductor related companies looking to expand from Singapore into Johor. Enquiries are supported by Capitaland’s established industrial network in Singapore, where it works with EDB Singapore and industry associations. However, we gather that prospective tenants generally prefer facilities that are immediately available, which makes it more difficult to secure firm commitments while the factories are still under construction. Nevertheless, CLMT remains confident in securing tenants once the facilities are completed, at rental rates of RM2.50-2.80psf, which would imply a gross yield of >7.3% and net yield of 6.0-6.5%.
BUY (Maintained)
Current price:
Target price:
Upside:
RM0.585
RM0.80
+36.8%
Analyst
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