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STI index up but no vol..
Funds coming in......STI rebounding
a79991 ( Date: 23-Jul-2020 10:17) Posted:
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Aiya this thread is capitamall trust, RHB posted TP $2.03.
Not only CapitaMall trust affected but all the commercials REITs in this world were badly affected by this pandemic but investors hunger with better yields I guess REITs are still the best to buy.
allen19 ( Date: 23-Jul-2020 10:24) Posted:
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Your bottom chart is for capital land,
not cmt or cct.
not cmt or cct.
allen19 ( Date: 23-Jul-2020 10:24) Posted:
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News released this morning : CapitaLand Commercial Trust 2Q Distribution Per Unit Down 23% (seen as attached)
The company still see uncertainties regarding when this recovery could be seen going forward, we remain cautiously bearish on the stock.
Technically, price is trading in a range. We think the previous swing high at 2.90 is a good level to sell, and target is the lower band of the range.
The company still see uncertainties regarding when this recovery could be seen going forward, we remain cautiously bearish on the stock.
Technically, price is trading in a range. We think the previous swing high at 2.90 is a good level to sell, and target is the lower band of the range.
Hope foreign funds would start looking at STI index stocks becos very undervalued comparing to regional.
CMT mulls over lease restructuring amid bleak Q2 results
It also says that the merger deal with CCT is still on the table and they are working towards the deadline
CAPITALAND Mall Trust (CMT) is considering flexible lease structures that will allow it to share risks with both existing and new tenants going forward, said Tony Tan, CEO of the Reit' s manager.
" The Reit has to be more flexible and take a bit of risk on the landlord side. Hopefully, if the tenant trades well, we can participate in the upside on turnover," he said.
In a webcast on Wednesday to discuss CMT' s results, Mr Tan also said that CMT' s merger with CapitaLand Commercial Trust (CCT) is still on the table. Both Reits are working towards convening the EGMs and trust scheme meeting before Sept 30 this year, which is also the long-stop date for the deal.
For the three months ended June 30, 2020, CMT' s revenue fell 39.8 per cent to S$114.1 million, from S$189.5 million a year earlier, due to lower gross rental income. CMT also waived S$74.1 million in rent.
Net property income (NPI) was down 48.9 per cent to S$68.1 million, from S$133.2 million in the year-ago period. Distributable income declined 27.5 per cent to S$78.1 million. This included the release of S$23.2 million, or a third of the S$69.6 million distributable income retained in Q1. CMT' s manager said it has observed gradual resumption of business normalcy, but is holding back some amounts out of caution.
CMT' s distribution per unit (DPU) fell 27.7 per cent to 2.11 Singapore cents, from 2.92 cents a year ago. This will be paid out on Aug 28.
For the half-year period DPU was 2.96 cents, versus 5.8 cents a year ago, and distributable income fell 48.7 per cent to S$109.7 million. Gross revenue fell 16.7 per cent to S$318.4 million, while NPI eased 20.8 per cent to S$216.4 million.
CMT' s portfolio (excluding Raffles City Singapore) also saw a 2.5 per cent drop in valuation to S$10.1 billion as at end-June, compared to six months ago, due to changes in assumptions on rent growth and the mark-down of some leases.
Rental reversion was positive at 0.1 per cent, but was lower than the 1.6-per-cent rent reversion in Q1. Portfolio occupancy dipped 1.6 percentage points from end-2019 to 97.7 per cent as at end-June 2020.
Mr Tan said shopper traffic in the six months was down 40.6 per cent year on year. But tenant sales fell 15.4 per cent, mitigated by e-commerce.
He added that 95 per cent of tenants have resumed operations and shopper traffic has recovered to 53 per cent of year-ago levels, with better malls hitting close to 80 per cent.
The worst performing asset has been its shophouses along Clarke Quay, where occupancy has fallen 7.7 percentage points to 92.3 per cent after some tenants moved out. Clubs are still restricted from operating and some are finding ways to reinvent themselves. The manager meanwhile is studying how it can work with the redevelopment of the nearby Liang Court, which its parent CapitaLand is involved in with City Developments, to reposition the area. Mr Tan said CMT may offer further rental reliefs to tenants there, as the need arises.
Across the portfolio, the percentage of tenants pre-terminating their leases contribute less than 2 per cent of CMT' s gross revenue. Leases that have to date submitted notices of relief for rental deferrals under the Covid-19 (Temporary Measures) Act 2020 make up less than 1 per cent of net lettable area.
Asked how flexible lease restructuring will be done, Mr Tan said fixed rents could come down, or leases could be structured such that rentals are based purely on gross turnover in the first year, and later on with a fixed rent tagged to turnover in subsequent years. This would especially apply to new-to-market tenants and those embarking on the omni-channel route alongside CMT, whose turnover sales numbers can be captured effectively.
Citi analyst Brandon Lee said CMT' s Q2 results reflect a subdued retail environment. He expects a slow recovery through FY2021, with more rebates required in the near-term. He maintains a " neutral" rating on the stock with a target price of S$2.11, but sees the merger with CCT as a key upside catalyst to its unit price.
CapitaLand on Wednesday also announced its first shoppertainment live show in Singapore, titled " CapitaStar Live SG: Flight 24/7" , which is a three-day six-hour livestream event that will premiere from July 31 to Aug 2, 2020, 8pm to 10pm daily.
Notice of Record Date 22 July 2020
Last Day of Trading on ?cum? Basis 28 July 2020, 5.00 pm
Ex-Date 29 July 2020, 9.00 am
Record Date 30 July 2020
Distribution Payment Date 28 August 2020
Last Day of Trading on ?cum? Basis 28 July 2020, 5.00 pm
Ex-Date 29 July 2020, 9.00 am
Record Date 30 July 2020
Distribution Payment Date 28 August 2020
vicloo ( Date: 22-Jul-2020 19:06) Posted:
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Is here under 2020 presentation
https://cmt.listedcompany.com/slides.html
https://cmt.listedcompany.com/slides.html
cookiemonster ( Date: 22-Jul-2020 15:06) Posted:
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Do you mean $1.40 during the Mar' 20? If so, I think anyone would have regretted not putting any money in the equity market. Presumably, you would have invested in other counters. If so, then the returns would still be great as well
Justice888 ( Date: 22-Jul-2020 18:25) Posted:
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The scenario illustrateed can be address by corporate finance:
- Expansion via debt issuance: Leverage at a reasonable interest rate typically would improve the return to shareholders. However, if the expansion doesn' t play out, then leverage will hurt all shareholders
- Expansion via right issue: REIT is fundamentally a game of yield. The rights issue price to finance the expansion would have an implied yield (i.e. expected annual distributable income from the new assets divide by the rights issue price). If the implied yield is higher than the pre-rights issue pre-rights issue yield of the counter, then the expansion is value accretive which would benefit incumbent unitholders, vice versa
There' s no blanket response to this and we would need to evaluate this on a case-by-case basis. Save to say, the main responsibility of fund managers is to create value for incumbent unitholders and not to pursue plans which aren' t value accretive. Then this becomes a question of competency and governance which I personally trust the Capitaland brand name to do right for its unitholders.
- Expansion via debt issuance: Leverage at a reasonable interest rate typically would improve the return to shareholders. However, if the expansion doesn' t play out, then leverage will hurt all shareholders
- Expansion via right issue: REIT is fundamentally a game of yield. The rights issue price to finance the expansion would have an implied yield (i.e. expected annual distributable income from the new assets divide by the rights issue price). If the implied yield is higher than the pre-rights issue pre-rights issue yield of the counter, then the expansion is value accretive which would benefit incumbent unitholders, vice versa
There' s no blanket response to this and we would need to evaluate this on a case-by-case basis. Save to say, the main responsibility of fund managers is to create value for incumbent unitholders and not to pursue plans which aren' t value accretive. Then this becomes a question of competency and governance which I personally trust the Capitaland brand name to do right for its unitholders.
uiop1223 ( Date: 22-Jul-2020 18:07) Posted:
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I almost bought Mapletree industrial trust when it was $1.40... I regretted. CapitaLand mall ipo price is $0.96. I believe those who bought at ipo price shld be net gain la.
uiop1223 ( Date: 22-Jul-2020 18:07) Posted:
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Similarly, when reits want to expand, due to high payout, it needs to either issue debt or right issues which dilutes the unit holders. Have sg reits lovers go compute the actual returns adjusting for rights issue since the reits get listed. Are u sure your capital outlay is compensated by the distributions?
LeShramp ( Date: 22-Jul-2020 15:16) Posted:
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Bro, you are right! Today market sentiment very bad that' s why all the index stocks down.
LeShramp ( Date: 22-Jul-2020 15:35) Posted:
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This is true but investors chasing for yield and value will certainly go for the REITs, real estate development and telco first as these are typically sectors that would lead recovery.
Unfortunatley, the STI is heavily skewed towards banks which we can reasonably expect their performance to remain muted in the next 1 year given the low interest rate, loan repayment deferment and etc.
If I want broad market exposure, I will go for S& P 500 at this juncture.
Anyway, just sit back and wait for higher dividend payout from this counter in H2' 20. I estimate about 1.4c worth of dividend per share from H1' 20 performance would need to be paid out in the next 2 quarters.
Unfortunatley, the STI is heavily skewed towards banks which we can reasonably expect their performance to remain muted in the next 1 year given the low interest rate, loan repayment deferment and etc.
If I want broad market exposure, I will go for S& P 500 at this juncture.
Anyway, just sit back and wait for higher dividend payout from this counter in H2' 20. I estimate about 1.4c worth of dividend per share from H1' 20 performance would need to be paid out in the next 2 quarters.
a79991 ( Date: 22-Jul-2020 15:26) Posted:
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STI would turn anytime once funds start to shift over here but when not sure.
LeShramp ( Date: 22-Jul-2020 15:16) Posted:
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No funds flowing into Singapore but to HK, China, Taiwan etc...
LeShramp ( Date: 22-Jul-2020 14:02) Posted:
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It' s also worth noting the following:
- All REITs are required to distribute 90% of taxable income. For 1H' 20, Amount Available For Distribution is $160.9ml and amount distributed (including the upcoming dividend) is $109.7m
- Government grant (as per the various budgets) have yet to be received in cash by the company (i.e. current recorded as receivables approx $50m based on approximation). Do note that accounting treatment would have require this to be recognized as a form of income. One would note that the May' 20 dividend was significantly lower than that of 2019. The company needs to hold off paying cash dividend until the government grant has been received
- Fair value of its properties approx $10b vs. market cap of $7.5b (i.e. signicant discount)
Selling the shares now would mean forfeiting signfiicant amount of distributable dividend from H1' 20. The distribution would likely step up in the next few quarter to catch up to regulatory requirement. On the other hand, buying now would effectively means getting a discount which would be realized as future dividend for this year trickles in
- All REITs are required to distribute 90% of taxable income. For 1H' 20, Amount Available For Distribution is $160.9ml and amount distributed (including the upcoming dividend) is $109.7m
- Government grant (as per the various budgets) have yet to be received in cash by the company (i.e. current recorded as receivables approx $50m based on approximation). Do note that accounting treatment would have require this to be recognized as a form of income. One would note that the May' 20 dividend was significantly lower than that of 2019. The company needs to hold off paying cash dividend until the government grant has been received
- Fair value of its properties approx $10b vs. market cap of $7.5b (i.e. signicant discount)
Selling the shares now would mean forfeiting signfiicant amount of distributable dividend from H1' 20. The distribution would likely step up in the next few quarter to catch up to regulatory requirement. On the other hand, buying now would effectively means getting a discount which would be realized as future dividend for this year trickles in
vicloo ( Date: 22-Jul-2020 14:19) Posted:
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Capitamall Trust can scoop some to buy now
Healthy dividends, undervalued now at 2.03
DBS July published TP 2.40
UOB July published TP 2.60
Govt stimulus has supported well during the past few months of Circuit Breaker lockdown
SG is now on the road of recovery, if you play medical stocks it is good to diversify into some stable blue chips at rock bottom =D
Healthy dividends, undervalued now at 2.03
DBS July published TP 2.40
UOB July published TP 2.60
Govt stimulus has supported well during the past few months of Circuit Breaker lockdown
SG is now on the road of recovery, if you play medical stocks it is good to diversify into some stable blue chips at rock bottom =D