While the rest of Lee's peers view the deal positively, the analyst says he sees limited near-term upside for ION.
Citi Research analyst Brandon Lee has downgraded CapitaLand Integrated Commercial Trust (SGX:C38U
) (CICT) to “neutral” from “buy” as he sees limited near-term distribution per unit (DPU) upside for ION.
CICT’s manager, on Sept 3, announced its intention to acquire 50% of ION Orchard at an agreed property value of $1.85 billion. The 50% stake will come from CICT's sponsor, CapitaLand Investment (CLI). The DPU accretion is expected to be 0.9% on a pro forma basis, had CICT held and operated ION Orchard from Jan 1 to June 30 this year.
