CapitaMall Trust DPU Increased by 4.8% in 3QFY19

CapitaMall Trust currently makes up 11% of my stock portfolio. On 21st October 2019, CapitaMall Trust announced a decent set of 3QFY19 financial results. Gross revenue increased by 17.9% to S$201.1 million. Net Property Income (“NPI”) increased by 17.6% to S$144.2 million. The most important of all, Distribution Per Unit (“DPU”) increased by 4.8% to 3.06 cents.

The increase in gross revenue was mainly due to the acquisition of the balance 70% interest in Westgate in November 2018 and the commencement of operations at Funan. There may be slight impact to gross revenue in the subsequent quarters as Lot One Shopper’s Mall commence its rejuvenation works in 3QFY19. The rejuvenation works are expected to complete by 2H2020.

One thing noteworthy is that even though shopper traffic increase by 1.3% year on year, tenant sales fell by 1.3% year on year. Read More

SPH REIT Full Year DPU for FY19 Up 1.1%

I was extremely busy with work this month and thus didn’t have time and energy to catch up on the financial results of the stocks and REITs that I have held in my stock portfolio. Earlier this year, I have added SPH REIT to my stock portfolio. SPH REIT currently makes up 11% of my entire stock portfolio.

On 10th October 2019, SPH REIT announced their 4QFY19 financial results. The results are inline with my expectations. The most important of all, Distribution Per Unit (“DPU”) increased by 2.1% to 1.46 cents.

The full year Distribution Per Unit (“DPU”) continued its growth by 1.1% to reach 5.60 cents for FY19. Read More

Mapletree Commercial Trust Preferential Offering of 71 New Units For Every 1000 Existing Units

I have previously wrote about Mapletree Commercial Trust’s acquisition of Mapletree Business City (Phase 2) which will be funded by a private placement of New Units to institutional and other investors; and / or a non-renounceable preferential offering of New Units to the existing unitholders of MCT on a pro rata basis.

The proposed acquisition was confirmed on the EGM that was held on 15th of October. On 16 October 2019, the Manager proposed to carry out an equity fund raising comprising an offering of 406,482,840 New Units to raise gross proceeds of no less than S$902.3 million by way of:

  • A private placement of 200,893,000 New Units at an issue price of between S$2.240 and S$2.280 per New Unit to raise gross proceeds of no less than S$450.0 million (the “Private Placement”); and
  • A pro-rata and non-renounceable preferential offering of 205,589,840 New Units on the basis of 71 New Units for every 1,000 existing units in MCT (“Existing Units”) to be held as at the Preferential Offering Books Closure Date to Entitled Unitholders at an issue price of between S$2.200 and S$2.240 per New Unit (fractions of a New Unit to be disregarded) to raise gross proceeds of no less than S$452.3 million (the “Preferential Offering”), (together, the “Equity Fund Raising”)

on 15th October 2019, the closing price of Mapletree Commercial Trust is S$2.34. Based on the issue price of S$2.24, this is around 4.27% discount to the current trading price. Of course there is a possibility the current share price may either go further up or down depending on how investors think about the preferential offering.

Here are some important dates for the Preferential Offering

Date/Time Event
5pm, Thursday, 24 October 2019 Closure of MCT’s Transfer Books and Register of Unitholders for the Cumulative Distribution
5pm, Friday, 8 November 2019 Unitholders and depository agents must have completed and returned Form A or Form B, as applicable, to the Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd.
Thursday, 21 November 2019 Payment of the Cumulative Distribution