2 Things That Investors Should Know CapitaLand Commercial Trust Now
- Original Post from The Motley Fool Sg

CapitaLand Commercial Trust (SGX: C61U) is one of the largest commercial real estate investment trusts (REITs) in Singapore by market capitalisation that is managed by CapitaLand Limited (SGX: C31).The REIT has ownership over nine commercial properties in Singapore and one property in Germany.


There are two things to know about the REIT right now: its latest financial performance and valuation.


Financial performance


Here is a table showing important items from CapitaLand Commercial Trust’s financial performance for the third quarter of financial year ending 31 December 2018.



Source: CapitaLand Commercial Trust Results Presentation


The year-on-year improvements in gross revenue and net property income (NPI) were due to strategic acquisitions of Asia Square Tower 2 and Gallileo (the property in Germany), but partially offset by the divestments of Wilkie Edge and Twenty Anson. As at 30 September 2018, the commercial REIT had a gearing ratio of 35.3% while its occupancy rate stood at 99.2%.


In all, CapitaLand Commercial Trust had a good quarter with stronger metrics across the board.


Valuation


There are two useful valuation metrics for assessing REITs. They are the price-to-book (PB) ratio, and the distribution yield.


The table below shows CapitaLand Commercial Trust’s PB ratio and distribution yield. It also shows the respective averages of the two valuation metrics for the 41 REITs that are in Singapore’s stock market.



Source: SGX StockFacts


We can see that CapitaLand Commercial Trust’s valuation is higher than the market average due to its low distribution yield and its high PB ratio.


$CapitaLand(C31.SI) $CapitaMall Trust(C38U.SI)

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minx99

I'm rather pleased with my investment in this Reit. Over the past 6 years, it has given me an average return of 11.6%, not too shabby for a self-taught amateur...


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3 REITs Dishing Out Distributions on Wednesday
- Original Post from The Motley Fool Sg

There are three real estate investment trusts (REITs) going ex-dividend tomorrow. In other words, you need to own them before that day if you wish to receive their distributions. Let’s look further.


CapitaLand Mall Trust (SGX: C38U)


CapitaLand Mall Trust is a retail REIT which owns 15 shopping malls in Singapore, including Bugis Junction, Junction 8, and Plaza Singapura. CapitaLand Mall Trust was the first REIT to be listed in our city-state in July 2002.


The retail REIT is giving out 1.56 Singapore cents per unit for the period from 8 November to 31 December 2018.


For the full year ended 31 December 2018, CapitaLand Mall Trust’s gross revenue increased by 2.2% to S$697.5 million mainly due to an acquisition of the remaining 70% stake in Westgate that the REIT did not own. Meanwhile, net property income rose 3.2% to S$493.5 million, and distribution per unit (DPU) climbed 3% to 11.50 cents, up from 11.16 cents in 2017.


Richard R Magnus, chairman of the CapitaLand Mall Trust’s manager, commented on the REIT’s latest performance:


“Through proactive asset and capital management, CMT has delivered another set of creditable results for FY 2018 despite challenges in the retail industry. The resilient performance is a testament to the quality of CMT’s portfolio, which is underpinned by its attractive locations and diverse tenant mix. Cognisant of the challenges ahead – which include slowdown in the global and Singapore economies, uncertainty in the interest rate environment and competition from the completion of new shopping malls – we remain vigilant and will continually explore new ways to differentiate our malls from the competition and increase customer engagement.”


CapitaLand Mall Trust’s unit price closed at S$2.38 on Monday, translating to a price-to-book (PB) ratio of 1.2 and a trailing distribution yield of 4.8%.


Mapletree Commercial Trust (SGX: N2IU)


Mapletree Commercial Trust owns a portfolio of five office and retail assets in Singapore, including the country’s largest retail mall, VivoCity.


Mapletree Commercial Trust is dishing out 2.33 Singapore cents per unit for its fiscal third quarter.


Gross revenue for the REIT’s three months ended 31 December 2018 increased by 2.6% year-on-year to S$112.5 million mainly driven by higher contribution from VivoCity. Net property income grew 2.2% while DPU inched up by 1.3%, from 2.30 cents to 2.33 cents.


Sharon Lim, chief executive of Mapletree Commercial Trust’s manager, gave some updates on VivoCity in the earnings release:


“Year to date, we have embarked on a series of changes at VivoCity, and this includes some rigorous management of tenant mix particularly in 3Q FY18/19. As a result, there was a transitory impact on VivoCity’s tenant sales. These changes, however, will strengthen VivoCity’s appeal and long-term positioning. Momentum will pick up once the changes are completed.”


Mapletree Commercial Trust’s units last traded at S$1.78 apiece on Monday. At that price, the REIT had a PB ratio of 1.2 and a trailing distribution yield of 5.1%.


Suntec Real Estate Investment Trust (SGX: T82U)


Suntec REIT owns retail and office assets in Singapore and Australia. In our country, the REIT is the owner of the huge office and retail asset, Suntec City.


Suntec REIT is paying 2.59 Singapore cents per unit for its fourth quarter.


For the 2018 financial year, gross revenue improved by 2.6% year-on-year to S$363.5 million but net property income fell 1.4% to S$241.0 million. DPU for the year declined too, inching down by 0.2% to 9.988 Singapore cents.


Suntec REIT’s unit price last closed at S$1.93 on Monday, giving a PB ratio of 0.9 and a trailing distribution yield of 5.2%.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of Mapletree Commercial Trust and CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


$CapitaMall Trust(C38U.SI) $Mapletree Com Tr(N2IU.SI) $Suntec Reit(T82U.SI)

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The Weekly Nibble: Best Dividend Shares
- Original Post from The Motley Fool Sg

Here are some of the most popular articles that have appeared on The Motley Fool Singapore’s website for the week.


Singapore’s Top 5 Dividend Shares Among the World’s Best


Do you like income stocks?


In this article, I looked at the top five Singapore-listed companies that are part of the FTSE All-World High Dividend Yield Index sporting the highest dividend yields. The FTSE All-World High Dividend Yield Index contains 1,389 globally-listed shares that have a higher-than-average dividend yield. The index does not include real estate investment trusts (REITs) and stocks that are forecast to pay no dividend over the next 12 months.


Companies discussed in the article include Hutchison Port Holdings Trust (SGX: NS8U), StarHub Ltd (SGX: CC3), Singapore Telecommunications Limited (SGX: Z74), M1 Ltd (SGX: B2F) and Venture Corporation Ltd (SGX: V03).


2 Singapore REITs I Am Watching This Week


My Foolish colleague, Jeremy Chia, touched on why he kept a lookout for two REITs – Keppel DC REIT (SGX: AJBU) and CapitaLand Mall Trust (SGX: C38U) – when they released their earnings during the week.


Keppel DC REIT released its earnings on 22 January while CapitaLand Mall Trust announced its financial results on 23 January.


3 Singapore Blue Chips That Have More Than Doubled Their Profits In The Last Decade


In this piece, Lawrence Nga explored a total of three Straits Times Index (SGX: ^STI) stocks that have more than doubled their profits in the last 10 years. Do jump into the article to know what the companies are.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


$STI(^STI.IN) $Keppel DC Reit(AJBU.SI) $M1(B2F.SI) $CapitaMall Trust(C38U.SI) $StarHub(CC3.SI) $HPH Trust USD(NS8U.SI) $Venture(V03.SI) $SingTel(Z74.SI)

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Singapore Retail REITs On The Rise
- Original Post from The Motley Fool Sg

While some have been predicting the demise of traditional retail due to e-commerce, the reality is anything but.


In fact, this week, two Singapore-focused retail real estate investment trusts (REITs ) — Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) — posted higher earnings, illustrating the resilience of the retail industry in Singapore.


Here’s a quick look at how these REITs fared in the latest quarter and what their managers said about the road ahead.


CapitaLand Mall Trust


In 2018, CapitaLand Mall Trust managed to increase its net property income and distribution per unit by 3.2% and 3.0% respectively.During the year, the trust secured new leases at a higher rate of 0.7% than existing contracts.


Crucially, even with the competition from new shopping malls, the trust’s portfolio of malls continue to enjoy high footfall during the year, with tenant sales climbing 0.5%. Its portfolio occupancy was also a healthy 99.2% at the end of 2018.


The chart below shows that most of the REIT’s malls posted year-on-year improvements in net property income.



Source: Capitaland Mall Trust FY2018 Earnings Presentation


Frasers Centrepoint Trust


For the three months ended 31 December 2018, Frasers Centrepoint Trust continued its winning streak by increasing its distribution per unit by 0.7%.


The trust, which owns suburban malls in Singapore, managed to increase its gross revenue and net property income by 2.9% and 2.5% respectively.Strong performances for its three biggest malls — Causeway Point, Northpoint City North Wing, and Changi City Point — were the key reasons for the growth.


Another positive was the average rental reversion rate of 6.9% during the quarter, which shows the trust’s pricing power with its tenants. The chart below shows how consistent the trust has been in negotiating higher rentals each year:



Source: Frasers Centrepoint Trust FY19 Q1 Earnings Presentation


The Road Ahead


While managers of both these REITs acknowledged that there are challenges that lie ahead for the retail sector, they are expecting their portfolios to remain resilient and stable.


The demise of traditional retail in Singapore has certainly not materialised as some analysts had expected. With REITs focusing on providing unique experiences in their malls, the brick-and-mortar retail scene looks set to continue to remain resilient well into the future.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust and Frasers Centrepoint Trust. The Motley Fool Singapore contributor Jeremy Chia doesn't own shares in any companies mentioned.


$CapitaMall Trust(C38U.SI) $Frasers Cpt Tr(J69U.SI)

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CapitaLand Mall Trust’s 2018 Full-Year Earnings: Steady Growth in Distribution Per Unit
- Original Post from The Motley Fool Sg

CapitaLand Mall Trust (SGX: C38U) is a retailreal estate investment trust (REIT) that owns 15 shopping malls in Singapore, including Tampines Mall, Bugis Junction, and Plaza Singapura.


This morning, CapitaLand Mall Trust announced its financial results for the fourth quarter and full year ended 31 December 2018.


Financial highlights


Gross revenue for 2018’s fourth quarter improved by 4.7% to S$180.5 million, up from S$172.4 million a year ago, mostly due to the November 2018 acquisition of the remaining 70% stake inWestgate that the REIT did not own. Higher gross rental income from IMM and Bedok Mall also contributed to the increase. However, lower gross revenue from Sembawang Shopping Centre (which was sold off in June 2018) and lower occupancy at JCube, Lot One Shoppers’ Mall, and Clarke Quay provided offsets.


Net property income (NPI) climbed 4.3% to S$124.4 million while distributable income to unitholders increased by 5.1% to S$108.1 million. Consequently, CapitaLand Mall Trust’s distribution per unit (DPU) grew 3.1% to 2.99 cents.


For the whole of 2018, the REIT’s gross revenue increased by 2.2% to S$697.5 million; NPI rose 3.2% to S$493.5 million; distributable income to unitholders stepped up by 3.8% to S$410.7 million; and DPU climbed 3% to 11.50 cents, up from 11.16 cents in 2017.


As of 31 December 2018, CapitaLand Mall Trust had a net asset value (NAV) per unit of S$2.02 and a gearing ratio of 34.2%. In comparison, the retail REIT’s NAV per unit and gearing were S$1.95 and 34.2% respectively. The REIT’s interest coverage remained healthy at 5.2 times at end-2018.


Operational highlights


The following slide summarises CapitaLand Mall Trust’s operational performance for 2018:



Source: CapitaLand Mall Trust 2018 earnings presentation


CapitaLand Mall Trust’s portfolio occupancy rate was almost 100% despite the ongoing challenges in Singapore’s retail space. Shopper traffic fell 0.9% year-on-year, but tenants’ sales per square foot inched up by 0.5%, showing that each shopper at the REIT’s malls spent more during the year.


In 2018, asset enhancement initiatives at Raffles City Singapore, Tampines Mall and Westgate were completed.


What management had to say


Richard Magnus, chairman of CapitaLand Mall Trust’s Manager, summarised the REIT’s 2018 performance:


“Through proactive asset and capital management, CMT has delivered another set of creditable results for FY 2018 despite challenges in the retail industry. The resilient performance is a testament to the quality of CMT’s portfolio, which is underpinned by its attractive locations and diverse tenant mix. Cognisant of the challenges ahead – which include slowdown in the global and Singapore economies, uncertainty in the interest rate environment and competition from the completion of new shopping malls – we remain vigilant and will continually explore new ways to differentiate our malls from the competition and increase customer engagement.”


Tony Tan, the chief executive of the REIT’s manager, said that Funan is on track to open in the second quarter of this year. Including leases under active negotiations, leasing for Funan has exceeded 80%. Funan is going to be Singapore’s first online-and-offline shopping centre.


The Foolish takeaway


CapitaLand Mall Trust was a steady ship in 2018, despite the challenging business conditions. Going into 2019, unitholders can expect a full-year contribution from the Westgateacquisition, and a half-year contribution from Funan. These should lead to higher DPU for CapitaLand Mall Trust this year.


At CapitaLand Mall Trust’s unit price of S$2.31 right now, it has a price-to-book ratio of 1.1 and a distribution yield of 5.0%.


$CapitaMall Trust(C38U.SI) $Full Apex(BTY.SI) $CapitaMall Trust(C38U.SI)

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CapitaLand Mall Trust’s 2018 Full-Year Earnings: Steady Growth in Distribution Per Unit
- Original Post from The Motley Fool Sg

CapitaLand Mall Trust (SGX: C38U) is a retailreal estate investment trust (REIT) that owns 15 shopping malls in Singapore, including Tampines Mall, Bugis Junction, and Plaza Singapura.


This morning, CapitaLand Mall Trust announced its financial results for the fourth quarter and full year ended 31 December 2018.


Financial highlights


Gross revenue for 2018’s fourth quarter improved by 4.7% to S$180.5 million, up from S$172.4 million a year ago, mostly due to the November 2018 acquisition of the remaining 70% stake inWestgate that the REIT did not own. Higher gross rental income from IMM and Bedok Mall also contributed to the increase. However, lower gross revenue from Sembawang Shopping Centre (which was sold off in June 2018) and lower occupancy at JCube, Lot One Shoppers’ Mall, and Clarke Quay provided offsets.


Net property income (NPI) climbed 4.3% to S$124.4 million while distributable income to unitholders increased by 5.1% to S$108.1 million. Consequently, CapitaLand Mall Trust’s distribution per unit (DPU) grew 3.1% to 2.99 cents.


For the whole of 2018, the REIT’s gross revenue increased by 2.2% to S$697.5 million; NPI rose 3.2% to S$493.5 million; distributable income to unitholders stepped up by 3.8% to S$410.7 million; and DPU climbed 3% to 11.50 cents, up from 11.16 cents in 2017.


As of 31 December 2018, CapitaLand Mall Trust had a net asset value (NAV) per unit of S$2.02 and a gearing ratio of 34.2%. In comparison, the retail REIT’s NAV per unit and gearing were S$1.95 and 34.2% respectively. The REIT’s interest coverage remained healthy at 5.2 times at end-2018.


Operational highlights


The following slide summarises CapitaLand Mall Trust’s operational performance for 2018:



Source: CapitaLand Mall Trust 2018 earnings presentation


CapitaLand Mall Trust’s portfolio occupancy rate was almost 100% despite the ongoing challenges in Singapore’s retail space. Shopper traffic fell 0.9% year-on-year, but tenants’ sales per square foot inched up by 0.5%, showing that each shopper at the REIT’s malls spent more during the year.


In 2018, asset enhancement initiatives at Raffles City Singapore, Tampines Mall and Westgate were completed.


What management had to say


Richard Magnus, chairman of CapitaLand Mall Trust’s Manager, summarised the REIT’s 2018 performance:


“Through proactive asset and capital management, CMT has delivered another set of creditable results for FY 2018 despite challenges in the retail industry. The resilient performance is a testament to the quality of CMT’s portfolio, which is underpinned by its attractive locations and diverse tenant mix. Cognisant of the challenges ahead – which include slowdown in the global and Singapore economies, uncertainty in the interest rate environment and competition from the completion of new shopping malls – we remain vigilant and will continually explore new ways to differentiate our malls from the competition and increase customer engagement.”


Tony Tan, the chief executive of the REIT’s manager, said that Funan is on track to open in the second quarter of this year. Including leases under active negotiations, leasing for Funan has exceeded 80%. Funan is going to be Singapore’s first online-and-offline shopping centre.


The Foolish takeaway


CapitaLand Mall Trust was a steady ship in 2018, despite the challenging business conditions. Going into 2019, unitholders can expect a full-year contribution from the Westgateacquisition, and a half-year contribution from Funan. These should lead to higher DPU for CapitaLand Mall Trust this year.


At CapitaLand Mall Trust’s unit price of S$2.31 right now, it has a price-to-book ratio of 1.1 and a distribution yield of 5.0%.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


$CapitaMall Trust(C38U.SI) $Full Apex(BTY.SI) $CapitaMall Trust(C38U.SI)

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