Latest news with #CLMT
The Star
5 hours ago
- Business
- The Star
REITs draw positive attention with ESG efforts
CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway-REIT) is a strong contender for F4GBM Index inclusion by year-end. PETALING JAYA: Malaysian real estate investment trusts (REITs) are expected to gain further traction in the sustainability space, with increasing potential for enhanced representation in the FTSE4Good Bursa Malaysia (F4GBM) Index in the coming review cycle this December. This momentum reflects the sector's growing alignment with environmental, social and governance (ESG) standards. CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway-REIT) is a strong contender for F4GBM Index inclusion by year-end. 'Our assessment indicates that Sunway-REIT is on track for potential inclusion in the F4GBM Index in December,' the research house said in a recent note. In the June review, Sunway-REIT joined Axis-REIT and Capitaland Malaysia Trust (CLMT) in attaining ESG Grading Band 4 – the second-highest tier – marking the highest number of REITs achieving this level in the last six cycles. Despite this, Sunway-REIT was not added to the index at that point as it was not a constituent of the FTSE Bursa Malaysia Emas Index as of end-May due to previously low liquidity. However, a turnaround in liquidity saw Sunway-REIT re-enter the FBM Emas Index following the June semi-annual review, paving the way for potential inclusion in the December F4GBM Index review. CIMB Research recommended 'hold' on Sunway-REIT with a target price of RM2.11. According to the research house, 'Only companies that are constituents of the FBM Emas Index as of the end of May are eligible for consideration in the June F4GBM Index review, while companies added thereafter are only eligible in the December review.' The REIT sector's weightage in the F4GBM Index has risen to 1.7% from 1.1% last December, following the inclusion of 19 new companies in the update last month. Among these were CLMT, KIP-REIT and YTL Hospitality-REIT, bringing the total number of REIT constituents to seven out of 160. 'To qualify for inclusion in the F4GBM Index, companies must achieve a minimum ESG score of 2.9 out of five,' CIMB Research noted. Based on its analysis, CLMT likely qualified due to liquidity, while YTL-REIT and KIP-REIT earned their spots through improved ESG performance. Still, five of the 10 largest REITs by market capitalisation – which represent 93% of the sector's total market capitalisation – remain absent from the index, including KLCC-REIT and IGB Commercial-REIT, mainly due to liquidity issues. Al-Aqar Healthcare-REIT was excluded for failing to meet the minimum ESG score. 'Overall, we are positive on the gradual progress made by REIT players in enhancing their ESG practices, as reflected by the increasing number of constituents in the F4GBM Index,' CIMB Research stated. The research house emphasised that further ESG gains lie within the environmental pillar, particularly in reducing carbon emissions and boosting energy efficiency. 'A key area for improvement is the reduction of carbon emissions through greater adoption of renewable energy or improving energy efficiency,' it said. REITs were encouraged to consider subscribing to Tenaga Nasional Bhd 's Green Electricity Tariff programme, which was revised this month to offer a more accessible flat rate of five sen per kilowatt-hour. KIP-REIT was singled out for retrofitting efforts across seven malls through a performance-based partnership that is expected to deliver energy savings of 15%. 'Sustainability-linked financing embeds pre-agreed sustainability performance targets into financing terms, directly linking borrowing costs to the achievement of ESG outcomes,' CIMB Research added, citing Sunway-REIT's RM3.4mil in savings from 2021 to 2023 as an example. With tenants increasingly favouring green-certified spaces and cost-effective financing tied to sustainability metrics, Malaysian REITs are positioned to benefit from continued ESG integration in the long term.
The Star
21 hours ago
- Business
- The Star
REITs in good stead for F4GBM Index inclusion
PETALING JAYA: Malaysian real estate investment trusts (REITs) are expected to gain further traction in the sustainability space, with increasing potential for enhanced representation in the FTSE4Good Bursa Malaysia (F4GBM) Index in the coming review cycle this December. This momentum reflects the sector's growing alignment with environmental, social, and governance (ESG) standards. CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway REIT) is a strong contender for F4GBM Index inclusion by year-end. 'Our assessment indicates that Sunway REIT is on track for potential inclusion in the F4GBM Index in Dec 2025,' the brokerage said in a recent note. In the June 2025 review, Sunway REIT joined Axis REIT and Capitaland Malaysia Trust (CLMT) in attaining ESG Grading Band 4 — the second-highest tier — marking the highest number of REITs achieving this level in the last six cycles. Despite this, Sunway REIT was not added to the index at that point as it was not a constituent of the FTSE Bursa Malaysia EMAS Index as at end-May 2025 due to previously low liquidity. However, a turnaround in liquidity saw Sunway REIT re-enter the FBM EMAS Index following the June 2025 semi-annual review, paving the way for potential inclusion in the December 2025 F4GBM Index review. CIMB Research recommended 'hold' on Sunway REIT, with a target price of RM2.11. According to CIMB Research, 'Only companies that are constituents of the FBM EMAS Index as at end-May are eligible for consideration in the June F4GBM Index review, while companies added thereafter are only eligible in the December review.' The REIT sector's weightage in the F4GBM Index has risen to 1.7% from 1.1% in December 2024, following the inclusion of 19 new companies in the June 2025 update. Among these were CLMT, KIP REIT, and YTL Hospitality REIT , bringing the total number of REIT constituents to seven out of 160. 'To qualify for inclusion in the F4GBM Index, companies must achieve a minimum ESG score of 2.9 out of 5,' CIMB Research noted. Based on its analysis, CLMT likely qualified due to liquidity, while YTL REIT and KIP REIT earned their spots through improved ESG performance. Still, five of the 10 largest REITs by market capitalisation — which represent 93% of the sector's total market cap — remain absent from the index, including KLCC REIT and IGB Commercial REIT, mainly due to liquidity issues. Al-Aqar Healthcare REIT was excluded for failing to meet the minimum ESG score. 'Overall, we are positive on the gradual progress made by REIT players in enhancing their ESG practices, as reflected by the increasing number of constituents in the F4GBM Index,' CIMB Research stated. The brokerage emphasised that further ESG gains lie within the environmental pillar, particularly in reducing carbon emissions and boosting energy efficiency. 'A key area for improvement is the reduction of carbon emissions through greater adoption of renewable energy or improving energy efficiency,' it said. REITs were encouraged to consider subscribing to Tenaga Nasional Bhd 's Green Electricity Tariff programme, which was revised in July 2025 to offer a more accessible flat rate of five sen per kilowatt-hour. KIP REIT was singled out for retrofitting efforts across seven malls through a performance-based partnership that is expected to deliver energy savings of 15% post-capex recovery. 'Sustainability-linked financing embeds pre-agreed sustainability performance targets into financing terms, directly linking borrowing costs to the achievement of ESG outcomes,' CIMB Research added, citing Sunway REIT's RM3.4mil in savings from 2021 to 2023 as an example. With tenants increasingly favouring green-certified spaces and cost-effective financing tied to sustainability metrics, Malaysian REITs are positioned to benefit from continued ESG integration in the long term.
Yahoo
14-06-2025
- Business
- Yahoo
Great week for Calumet, Inc. (NASDAQ:CLMT) institutional investors after losing 6.0% over the previous year
Institutions' substantial holdings in Calumet implies that they have significant influence over the company's share price A total of 12 investors have a majority stake in the company with 50% ownership Insiders have sold recently This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls Calumet, Inc. (NASDAQ:CLMT), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Last week's US$146m market cap gain would probably be appreciated by institutional investors, especially after a year of 6.0% losses. Let's take a closer look to see what the different types of shareholders can tell us about Calumet. Check out our latest analysis for Calumet Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Calumet does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Calumet's earnings history below. Of course, the future is what really matters. Calumet is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Heritage Group with 16% of shares outstanding. For context, the second largest shareholder holds about 6.5% of the shares outstanding, followed by an ownership of 6.2% by the third-largest shareholder. After doing some more digging, we found that the top 12 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. We can report that insiders do own shares in Calumet, Inc.. The insiders have a meaningful stake worth US$53m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling. With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Calumet. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Private equity firms hold a 6.5% stake in Calumet. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public. It seems that Private Companies own 17%, of the Calumet stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Calumet is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored... If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Focus Malaysia
10-06-2025
- Business
- Focus Malaysia
Positive rental reversions, new assets drive earnings growth for select REITs
M-REITs delivered broadly in-line quarter one results, with notable year-on-year (YoY) earnings growth from Axis REIT, Sunway REIT, CLMT and Pavilion REIT. This is driven by positive rental reversions, improved occupancy rates, and contributions from newly acquired assets. Hospitality REITs saw some seasonal softness due to Ramadan. Operationally, the retail and industrial segments remained resilient, while office stayed challenging, though largely defended by long leases and stable occupancy. 'Looking ahead, we expect catalysts in the second half of 2025 (2H25) to include asset recycling, and new acquisitions,' said Maybank Investment Bank (MIB). Active asset enhancement initiative by Sunway REIT and IGBREIT should further support income growth. The hospitality segment for KLCCP and Sunway REIT, may see a seasonal rebound post-Ramadan. 'We also see strategic catalysts among REITs, including CLMT's industrial diversification and Sentral REIT's ongoing pivot away from pureplay office exposure,' said MIB. Al-Salam is progressing on its 'DISRUPT27' repositioning strategy, with asset recycling and KOMTAR JBCC's on-going reconfiguration expected to support medium-term yield and valuation recovery. PavREIT and CLMT's planned placements and new assets also offer medium-term upside to earnings and distribution per unit (DPU) growth. Most REITs continue to guide for stable dividends, and with gearing levels largely within comfortable thresholds. There remains room for selective growth via yield-accretive acquisitions. That said, management across the sector maintained a cautiously optimistic outlook, flagging several macro uncertainties like potential implementation of an 8% service tax on rental, which would add costs for tenants while limiting REITs' ability to raise rents, as well as potential increase to electricity tariffs and broader economic uncertainties, such as fuel subsidies and tariff wars. MIB retains a positive view on the M-REITs sector, underpinned by resilient fundamentals, attractive yields, and visible catalysts for income growth in 2H25. As the REITs appear to head towards further asset diversification, the quality of assets in its portfolio would be crucial. —June 10, 2025 Main image: Propertyguru
The Star
05-06-2025
- Business
- The Star
CLMT's RM250mil fundraise to reduce gearing
TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets. PETALING JAYA: Capitaland Malaysia Trust 's (CLMT) proposed private placement to raise up to RM250mil is being viewed positively as a successful placement will enable the real estate investment trust (REIT) to reduce net gearing that has climbed due to borrowings to acquire industrial assets. Maybank Investment Bank Research, which has maintained a 'buy' recommendation on the stock and raised the target price to 76 sen from 75 sen, projects the REIT's net gearing to be reduced to 39.6% post-placement from 44.1% in the first quarter ended March 31, 2025 (1Q25) based on existing borrowings for the industrial asset acquisitions. 'We are positive on this exercise as it enhances CLMT's balance sheet strength and provides additional headroom for future yield-accretive acquisitions,' the research house said, as proceeds from the placement would be used to partly refinance borrowings of RM400mil of completed and pending logistics as well as industrial assets. It added that these acquisitions would be expected to contribute RM20mil in gross rental income annually or around 4% of the financial year ending Dec 31, 2026 (FY26) revenue. 'Post-acquisition, CLMT's industrial and logistics exposure will rise from 2.8% to 7.9% of assets under management, which is expected to contribute around 9% of FY26 net property income,' it said. 'We expect its retail assets to remain resilient with mid-to-high single-digit range rental reversion and steady occupancy for its ex-Klang Valley malls. 'Despite short-term dilution, longer-term earnings visibility, diversification and improved gearing, support our positive view,' it added. TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets in which more stable and recurring income can be expected. 'We are positive on CLMT's proposed placement, which reflects a proactive and forward-looking approach to strengthening its capital base while preserving balance sheet flexibility,' the research house said. It has reiterated a 'buy' call on the stock with an unchanged target price of 82 sen. It pointed out that while there would be some near-term dilution to earnings per unit, the longer-term benefits from improved gearing, enhanced portfolio mix and rising rental contributions from logistics assets outweigh the short-term impact.
