CapitaMall Trust

[gzbkel]

It's pretty amazing how capitaland and its valuers are valuing the properties. Using URA's data for June 2012 to June 2015 as a comparison, the retail property price index has risen by 5.4%. Remarkably, CapitaMall Trust's s$ per square feet for NLA across its portfolio have risen by 6%-20% (average approx 12%) across the same period!

To add on, most of these properties (except Plaza Singapura) are on 99 year leasehold which means since then, they have lost 3 years of their lease, yet their values rose way faster than national average. Pretty confused how CMT's valuers are doing their calculation and if valuation have been appropriately done.

CapitaMall Trust Property value (end 2012), PDF Page 21
http://infopub.sgx.com/FileOpen/CMTMacqA...leID=60504

CapitaMall Trust Property value (end June 2015), PDF Page 11
http://infopub.sgx.com/FileOpen/20151130...eID=380348

URA's 2Q 2012 index
https://www.ura.gov.sg/uol/media-room/ne...-79a3.ashx

URA 2Q 2015 index
https://www.ura.gov.sg/uol/media-room/ne...15-39.aspx

I think valuation is also a function of earning power.
According to AR2012, investment properties is 8191 million, NPI is 445 million, so property yield is 5.44%.
According to AR2014, investment properties is 7510 million, NPI is 448 million, so property yield is 5.97%.

I would not say that valuation is unreasonable if you compare yield of 2014 with 2012. (2015 AR not out yet)

[psslo]

Is Singapore shopped out? CapitaLand Mall clues say yes

https://www.theedgesingapore.com/singapo...a-87243593

[corydorus]

Is Singapore shopped out? CapitaLand Mall clues say yes

https://www.theedgesingapore.com/singapo...a-87243593

Actually I am still scratching my head.

The Malls are still as full as ever for most of CMT malls. And they are maintaining stable DPU even without funan.  Sometimes writer has to be on the ground to see it for themselves. 


Cory

[lonewolf]

Agree. The writer makes some assumption without further elaborating or the corresponding figures to back it up. eg. he says that 'the share of food and beverage in CapitaLand's rental income from Singapore malls has risen to 31% from 27% three years ago'. So why is that a bad thing? Do F&B outlets pay lower rental or % of sales?

[karlmarx]

SINGAPORE'S malls are showing some resilience to the global hollowing out of physical retail by online shopping. The demographics of the smartphone generation are still against them, though.


Suburban middle-class shopping centres put up a strong show in CapitaLand Mall Trust's quarterly earnings on Tuesday.

https://www.businesstimes.com.sg/real-es...-mall-rats

...

It should be clear by now that the supply of retail malls is more than the demand for them. There are only so much shoppers to go around. And it seems that CMT malls are the best in terms of attracting shoppers, and hence, tenants. While CMT is able to maintain or increase rental, other retail landlords are lowering them. Second Chance's retail units are probably a good representation of the performance of 2nd/3rd tier malls.

Apart from their good location, I will say CMT malls are also well-managed. Or at least, there is an active effort to improve performance.

The threat of online shopping has come, and it is the poorly-managed malls -- those that are more concerned with perhaps, collecting fees from tenants -- that has become their fodder. 

Well-managed and located malls with an ability to provide value-add to shoppers will continue to thrive for a long time.

[cyclone]

CapitaLand to create Asia-Pacific’s third largest REIT with US$6.2 billion merger of Singapore office and shopping mall trusts
* CapitaLand Mall Trust and CapitaLand Commercial Trust to merge their assets in cash and shares transaction worth S$8.3 billion
* At least four other combinations have taken place in Singapore’s REIT industry over the past 12 months

SCMP Reporters
Published: 11:41am, 22 Jan, 2020
Updated: 12:02pm, 22 Jan, 2020

CapitaLand Mall Trust and CapitaLand Commercial Trust plan to merge their holdings in shopping malls and offices in Singapore and Germany to create the third largest real estate investment trust by market value in Asia-Pacific.

CapitaLand Mall Trust will buy all CapitaLand Commercial Trust units by stock, cash and fees worth S$8.3 billion (US$6.2 billion), according to a Singapore stock exchange filing on Wednesday.

The combination will put 15 shopping malls and 10 offices, mostly in the Southeast Asian city, under one roof with a combined asset value of S$22.9 billion and average occupancy rate of 99 per cent, the filing shows. Both trusts are controlled by Singapore’s biggest landlord CapitaLand Limited, a unit of state investment company Temasek Holdings.

The combined unit had a market value of S$16.8 billion based on their stock prices on January 21. This ranks the merger behind Hong Kong-listed Link Reit and Australian group Scentre Group, with S$30.2 billion and S$19.1 billion in market value, respectively, according to the filing.

The combination is at least the fifth tie-up among Singapore-listed REITs over the past 12 months and ranks as one of the top 10 mergers and acquisitions of all time in the city state. Benefits include the ability to consolidate management expertise and build a bigger war chest for acquisitions.

Combined, the entity is expected to be the largest REIT in Singapore by market value and total portfolio property value, according to Wednesday’s statement. It will have the ability to undertake up to S$4.6 billion of overseas acquisitions in developed countries, while remaining predominantly Singapore focused.

“It’s a trend where we see REITs pushing for bigger size and diversification, both in terms of geography and asset type,” said Joel Ng, an analyst at KGI Securities (Singapore). “Given the limited opportunities in Singapore for retail and office acquisitions, the combined entity will allow for more such integrated developments as it expands overseas.”

The enlarged scale of the combined portfolio should allow the new group to compete better in Singapore and overseas in the retail and office sectors. Higher trading liquidity and a potential for positive re-rating could also bring a more competitive cost of capital.

In other industry consolidations, CapitaLand Limited struck a S$6 billion deal with Temasek to combine Ascendas Pte and Singbridge Pte in January last year.

More details in https://www.scmp.com/business/article/30...ion-merger

See also :
1. https://links.sgx.com/FileOpen/Annc_CMT_...eID=594065
2. https://links.sgx.com/FileOpen/News_Rele...eID=594066
3. https://links.sgx.com/FileOpen/Presentat...eID=594067
4. https://links.sgx.com/FileOpen/Presentat...eID=594068

[lonewolf]

The proposed CMT-CCT merger has been put on hold. I guess that is the sensible thing to do given the current situation.

SOURCE: UPDATE ON THE PROPOSED MERGER

[Duskerdawn]

The CMT-CCT has since been completed.

Since the run-up in price to approximately $2~, I personally would be holding CapitaLand Integrated Commercial Trust. The basis is that both the retail and commercial reit will continue to recover gradually. Hence, its good to hold on for the quarterly dividends while waiting for the full recovery.

Do find my analysis here in my blog below.

https://duskerdawninvestingjourney.wordp...rust-c38u/

[EnSabahNur]

CICT's Gallileo property, the English Theatre Frankfurt and Commerzbank

CapitaLand Integrated Commercial Trust's (CICT) property in Frankfurt (Germany), Gallileo, is at the centre of a kerfuffle between a theater company, German government ministries and Commerzbank.

[weijian]

CICT's Gallileo property, the English Theatre Frankfurt and Commerzbank

CapitaLand Integrated Commercial Trust's (CICT) property in Frankfurt (Germany), Gallileo, is at the centre of a kerfuffle between a theater company, German government ministries and Commerzbank.

There seems to be 3 stakeholders - City Gov/the theater (the "squatter"), the tenant and the owner. Only one of the 3 stakeholders is not German....hmmm