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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CapitaLand Mall Trust’s 2019 Q1 Earnings: Increase in DPU
- 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 Bugis Junction, Westgate, and Plaza Singapura.


This morning, CapitaLand Mall Trust announced its financial results for its first quarter ended 31 March 2019.


Financial highlights


Gross revenue for the reporting quarter increased by 10% year-on-year to S$192.7 million. The improvement was mostly due to the acquisition of the remaining 70% balance of Westgate in November 2018. Westgate contributed S$19.1 million to gross revenue. On a like-for-like basis (which also excludes Westgate), gross revenue inched up by 1.2% year-on-year, which is still commendable.


Meanwhile, net property income grew 11.5% to S$140.1 million, and distributable income to unitholders climbed 7.4% to S$106.3 million. Consequently, distribution per unit (DPU) went up by 3.6% to 2.88 Singapore cents.


As of 31 March 2019, CapitaLand Mall Trust had a net asset value (NAV) per unit of S$2.04 and a gearing ratio of 34.4%. In comparison, at the end of 2018, the retail REIT had S$2.02 in NAV per unit and 34.2% in gearing.


Operational highlights


The following slide summarises CapitaLand Mall Trust’s operational performance for the first quarter of 2019:Source: CapitaLand Mall Trust FY 2018 earnings presentation


CapitaLand Mall Trust’s portfolio occupancy rate stood at 98.8%, at the end of March 2019, down from 99.2% at the end of last year. Shopper traffic rose 2% year-on-year, but tenants’ sales per square foot inched down by 0.4%.


Looking ahead


Funan, which has been undergoing redevelopment since July 2016, is slated to open in the middle of this year. The mall is around 90% leased and is expected to contribute progressively to CapitaLand Mall Trust’s earnings from the second half of 2019.


Tony Tan, chief executive of CapitaLand Mall Trust’s manager, added:


“Amidst slowing down of the global and Singapore economies, we remain cautious in our outlook. The coming on stream of new retail space of about 1 million square feet (excluding Funan) in Singapore this year is expected to intensify competition among shopping malls. We will stay proactive in our asset and investment management, and continually evaluate opportunities to grow and enhance CMT’s portfolio. These include potential enhancement initiatives for CMT’s older assets, as well as acquisition and redevelopment opportunities.”


At CapitaLand Mall Trust’s current unit price of S$2.34, it has a price-to-book ratio of 1.15 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.


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Better Buy: CapitaLand Mall Trust or Frasers Centrepoint Trust? Part 3
- Original Post from The Motley Fool Sg

Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) are two real estate investment trusts (REITs) with a focus on retail assets.


The former owns properties such as Causeway Point and Northpoint City North Wing, while the latter is the owner of 15 malls such as Tampines Mall, Junction 8, and Funan.


Given that both REITs are exposed to retail-related properties, investors might want to know which is a better buy now. To find out, we’re putting the duo to a test made up of three parts.


Inpart 1 and part 2, we looked at the REITs’ track records of growth in distribution per unit (DPU) in the last decade, as well as their debt profiles. Frasers Centrepoint Trust came in ahead in both tests. In this article, we’re looking at the last part of our comparison: valuation.


The showdown


We will focus mainly on two valuation metrics: the price-to-book (P/B) ratio and the distribution yield.


Let’s begin with the P/B ratio. Frasers Centrepoint Trust and Capitaland Mall Trust have P/B ratios of 1.1 and 1.2, respectively. Frasers Centrepoint Trust’s lower P/B ratio suggests it has a lower valuation.


Frasers Centrepoint Trust and Capitaland Mall Trust have distribution yields of 5.2% and 4.8%, respectively. The higher a REIT’s yield, the lower is its valuation. Again, we can see that Frasers Centrepoint Trust has a lower valuation based on distribution yield.


Conclusion


Frasers Centrepoint Trust appears to be the clear winner thanks to its better growth in distribution per unit (DPU), better debt profile, and lower valuation.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.Stop worrying about the uncertain REITs market with our new Complete Guide To Buying The Best Singapore REITs. We give you 3 quick ways to easily value your REITs so you save tons of research time. Value your REITs today so you know exactly when to buy, sell or hold. Simply enter your email here and we will rush the 42-page PDF immediately to your inbox...for FREE!


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Frasers Centrepoint Trust and Capitaland Mall Trust.


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

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Better Buy: CapitaLand Mall Trust or Frasers Centrepoint Trust? Part 2
- Original Post from The Motley Fool Sg

Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) are two real estate investment trusts (REITs) with a focus on retail assets.


The former owns properties such as Causeway Point and Northpoint City North Wing, while the latter is the owner of 15 malls such as Tampines Mall, Junction 8, and Funan.


Given that both REITs are exposed to retail-related properties, investors might want to know which is a better buy now. To find out, we’re putting the duo to a test made up of three parts.


Inpart 1, we looked at the companies’ track records of growth in distribution per unit (DPU) over the last decade, and Frasers Centrepoint Trust came out ahead. In part 2, we’re looking at the next comparison: debt profile.


The showdown


Let’s begin with Frasers Centrepoint Trust. As of 31 December 2018, Frasers Centrepoint Trust had a gearing ratio of 28.8%. Its weighted average term to maturity is 1.8 years, and the all-in cost of borrowing is at 2.7%.


As of 31 December 2018, Capitaland Mall Trust had a gearing ratio of 34.2%. Its weighted average term to maturity is 4.4 years, and the all-in cost of borrowing is at 3.1%.


It looks like Frasers Centrepoint Trust has a lower gearing and borrowing cost compared to Capitaland Mall Trust. However, Frasers Centrepoint Trust’s term to maturity is lower, at 1.8 years (the REIT has secured commitment for refinancing, which will increase the term to maturity to 2.6 years upon completion).


Conclusion


Both REITs have acceptable debt profiles. Frasers Centrepoint Trust is slightly better positioned in the long run (from a growth perspective) mainly due to its lower gearing and cost of borrowing.


Let’s move on topart 3 of the comparison.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Frasers Centrepoint Trust and Capitaland Mall Trust.


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

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Better Buy: CapitaLand Mall Trust or Frasers Centrepoint Trust? Part 1
- Original Post from The Motley Fool Sg

Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) are two real estate investment trusts (REITs) with a focus on retail assets.


The former owns properties such as Causeway Point and Northpoint City North Wing, while the latter is the owner of 15 malls such as Tampines Mall, Junction 8, and Funan. Given that both REITs are exposed to retail-related properties, investors might want to know which is a better buy now. To find out, we’re putting the duo to a test made up of three parts.


In this first test, we’re looking at the companies’ track records of growth in distribution per unit (DPU) over the last 10 years.


The showdown


From fiscal year 2009 to fiscal year 2018, Frasers Centrepoint Trust has grown its DPU from 7.51 Singapore cents to 12.015 Singapore cents. In other words, its DPU was up by 60.0% during that period, giving investors a compounded annual growth rate (CAGR) of 5.4%.


From fiscal year 2009 to fiscal year 2018, Capitaland Mall Trust has grown its DPU from 8.85 Singapore cents to 11.50 Singapore cents. In other words, DPU was up by 29.9% during that period, giving investors a CAGR of 3.0%.


Conclusion


Both REITs have grown their DPUs over the last decade, but Frasers Centrepoint Trust grew its DPU at a higher rate during that period.


Let’s move on topart 2 of the comparison where we will look at their ratio.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Frasers Centrepoint Trust and Capitaland Mall Trust.


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

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CapitaLand Limited’s 2018 Earnings Update: Ending the Year on a High Note
- Original Post from The Motley Fool Sg

One of Asia’s largest real estate outfits, CapitaLand Limited (SGX: C31), announced its financial results for the full year ended 31 December 2018 this morning. Let’s look at the key highlights from the announcement here:


1. Revenue for 2018 grew 21.3% to S$5.60 billion, up from S$4.62 billion a year ago. The improvement was due to 1) contributions from newly acquired and operational properties in Singapore, China, Germany and the United States; 2) higher handover of units from residential developments in China and Vietnam; and 3) consolidation of revenue from CapitaLand Mall Trust (SGX: C38U), CapitaLand Retail China Trust (SGX: AU8U) and RCS Trust.


2. Gross profit climbed 32.9% year-on-year to S$2.69 billion, and profit from operations increased by 31.6% to S$3.19 billion.


3. Consequently, net profit rose 12.3% to S$1.76 billion, an increase from S$1.57 billion a year ago. The 2018 net profit is the highest achieved since 2008.


4. Diluted earnings per share swelled from 34.4 Singapore cents to 39.0 Singapore cents.


5. For the year, operating net profit, which excludes one-off gains or losses and the sale of 45 units of The Nassim in 2017, improved 13.8% to S$872.2 million.


6. As of 31 December 2018, the property giant had S$5.06 billion in cash and cash equivalents, and S$23.63 billion in total debt. This translates to a net debt position of S$18.57 billion. In comparison, a year ago, it had S$15.59 billion in net debt (cash of S$6.11 billion and total debt of S$21.69 billion).


7. The following shows how CapitaLand’s liquidity position changed from 2017 to 2018:Source: CapitaLand Limited 2018 earnings presentation


8. Net asset value per share at end-2018 grew 4.8% to S$4.55 from S$4.34.


9. CapitaLand’s return on equity (ROE) in 2018 stood at 9.3%, up from 8.6% in 2017. The growth was mostly on the back of portfolio gains from recycling properties of around S$4.0 billion in gross value, stronger recurring income contributed by newly acquired and operational assets, and revaluation gains.


10. The company’s board is proposing a first and final dividend of 12 Singapore cents per share for the year, unchanged from 2017.


11. Looking ahead, Lee Chee Koon, president and group chief executive of CapitaLand, said:


“While CapitaLand continues to leverage and strengthen our existing business and asset portfolio, we will seek out new growth drivers to bring us into the next phase of growth. In this regard, we have announced the proposed acquisition of Ascendas-Singbridge to create Asia’s largest diversified real estate group with assets under management (AUM) of over S$116 billion. The transaction will strengthen our presence and pipeline in our core markets – Singapore and China. It will give us immediate scale in new economy sectors such as logistics and business parks, and in growth markets such as India, the U.S. and Europe.”


At CapitaLand’s current share price of S$3.43, it has a price-to-book ratio of 0.75 and a dividend yield of 3.5%.


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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 recommendations on CapitaLand Limited, CapitaLand Mall Trust and CapitaLand Retail China Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


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