CapitaLand Mall Trust is largest and first real estate investment trust to be listed on the Singapore Exchange (SGX). The trust has a total of 15 properties located in suburban and downtown Singapore. CMT also holds a 14.1% stake in CapitaRetail China Trust. The trust is externally managed by CapitaLand Retail, and parent CapitaLand retains a 29.3% stake in CMT.
Remember I mentioned about dying malls in the previous post? Well their Singapore REIT will just change your mind about this stock.
If you have not yet read our previous post on CMMT below is the link
Investor relations at the time of writing
✔️ Stock Name: CapitaLand Mall Trust C38U (CMLT)
✔️ P/E: 16.51
✔️ DY: 3.54
✔️ Market Capitalization: 9.55B SGD
✔️ Gross Margin (TTM): 63.96%
✔️ Operating Margin (TTM): 46.63%
✔️ Net Profit Margin (TTM): 76.06%
Shopping malls they own 🏬
📌 West Region – Jcube, IMM Building, Westgate
📌 North Region – Bukit Panjang Plaza, Lot One Shoppers’ Mall
📌 North East Region – Junction 8
📌 East Region – Tampines Mall, Bedok Mall
📌 Central Region – Bugis Junction, Raffles City, Plaza Singapura, Clarke Quay, Bugis+, Funan, The Atrium@Orchard
💨 2018 Highlights
📌 Distributable income rose from S$395.8 million to S$410.7 an increase of 3.8% from FY 2017 to FY 2018 while it is a constant increase YoY as FY 2016 recorded a S$394.3 million distributable income
📌 Distribution per unit has also increased by 34 cents per share from 11.16 cents in FY 2017 to 11.50 cents in FY 2018 which is an increase of 3.0%
📌 However the annual shopper rate reduced from 347.4 million int FY 2016 to 346.3million in FY 2017 to 338.0 million in FY 2018
📌 Under their Moody’s Rating Scale they are under Aa (A2) which they are judged to be of high quality and are subjected to very low credit risk, basically its like your CTOS credit score, the higher the better
📌 Number of properties that they own has been decreased as on FY 2018 they have sold 1 property, total number of properties for FY 2018 is 15, while their total number of properties in their 2016 and 2017 are 16 properties
📌 Gross revenue and net property income have risen by 2.2% and 3.2% to S$697.5 million and S$493.5 million respectively in FY 2018, gross revenue increased is mainly due to the completion of acquisition of the remaining 70% interest in Westgate as well as higher contribution from Plaza Singapura, IMM Building, Tampines Mall, Junction 8 and Bedok Mall
5 years average dividend yield is around 5.25% which is still an attractive dividend yield as normal FD rate especially in Singapore is only around 1.8% or 2% while in Malaysia is only around 3.5% to 4% which shows that REITs in SG in terms of DY is still attractive.
DY in their FY 2018 is around 4.24% but their price has been increasing consistently over the years as well as their revenue however their dividend per share has reduced from 13 cents per share in FY 2018 to 10 cents per share in 2019. Their 5 years average DPS is 11 cents a share. 💰
Recently they just had their corporate presentation and they mentioned about they will be proposing a merge with CapitaLand Commercial Trust.
Now a little something about CapitaLand Commercial Trust, their market capitalization is at 11.1 billion owning 10 properties in total 🏬🏬🏬
After merging it will be called CapitaLand Integrated Commercial Trust which is the third largest REIT in the whole of Asia pacific and it is the largest REIT in Singapore! The total market capitalization after merging will be S$22.9 billion with a total of 24 properties. After merging, their entity owns 100% of Raffles City in Singapore. WOW!
The new CapitaLand Integrated Commercial Trust will be splitting their properties into 3 segments
📍 Integrated development
But why a need for a merger? Well, managements say that merging and having a bigger REIT will give them more “power” or flexibility to take on larger REIT development projects in the future to follow the real estate trend 🤔💭
However, the deal is not yet finalized as it is still in its proposal stage as they need to vote for it in their EGM at around May 2020, as a shareholder you have the right to attend and vote if you are with or against the merger. “If you are a shareholder” 😉
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