Capitaland Mall Trust Annual General Meeting (2018 Overview)

Capitaland Mall Trust has just held their Annual General Meeting (AGM) on 11th April 2019. Capitaland Mall Trust currently makes up 11% of my stock portfolio. Basically, they are covering an overview of 2018. FY18 financial highlights from the Annual General Meeting (AGM) includes the increase of distributable income to S$410.7 million, increase of distribution per unit to 11.50 cents and increase of Net Asset Value (NAV) to S$2.02.

FY2018
(S$’000)
FY2017
(S$’000)
Change
Gross Revenue 697,521 682,469 2.2%
Net Property Income 493,548 478,234 3.2%
Distributable Income 410,675 395,824 3.8%
Distribution Per Unit (“DPU”) (cents) 11.50 11.16 3.0%

Occupancy Rates

Occupancy stood at 99.2% which you can find from their presentation slides below. Annual Shopper Traffic has declined slightly by 0.9% which is not too worrying and based on this figure, we can see how strong malls under Capitaland Mall is able to continue to attract shoppers despite the threat of the growing trend towards online shopping.

It is note worthy to mention how CapitaMalls attract shoppers via their shoppers reward program such as earning CapitaStars for spending at its malls where shoppers can use their rewards points to redeem CapitaMall vouchers. This has kept shoppers returning to their malls to spend.

Debt

The gearing ratio currently stood at 34.2% with 89.8% of the assets unencumbered. 13 properties are wholly owned, directly and indirectly under Capitaland Mall Trust with the exception of Westgate. You can find more details on the acquistion of Westgate here.

Redevelopment of Funan

Funan Centre

I have mentioned that the re-opening of Funan that can be a possible catalyst of CapitaMall Trust. The redeveloped Funan (Six storey retail mall, two office towers and one block of serviced residence) is targeted to re-open in mid 2019. Including leases under active negotiations, leasing has reached more than 80%.

Current Dividend Yield

The same question comes into our mind. Should you buy Capitaland Mall Trust now? Based on the distribution per unit of 11.5 cents and current price of S$2.39, this translates to a dividend yield of 4.81%. I will give it a miss if I am not yet vested as I am targeting for a dividend of above 5% for REITs.

The REIT is also current trading above its Net Asset Value (NAV) of S$2.02. The current price is 18.3% above premium to its NAV.

CapitaMall Trust DPU for 4Q2018 is 2.99 Cents

CapitaMall Trust has announced their 4Q2018 financial results on 23rd January 2019. It was quite amazing CapitaMall Trust is still able to increase its distribution per unit (“DPU”) quarter on quarter. Distribution per unit (“DPU”) for 4Q2018 was 2.99 cents, 3.1% higher than the Distribution per unit (“DPU”) of 2.90 cents for 4Q2017. Based on CapitaMall Trust’s closing price of S$2.27 per unit on 22 January 2019, the annualised distribution yield for 4Q2018 was 5.22%.

According to the presentation slides that was released by CapitaMall Trust, most of the asset enhancement works that are ongoing last year has been completed.

Here are more details on the assets updates:

  • March – Completed the mall interior rejuvenation works of Raffles City Singapore
  • 18 June – Completed the sale of Sembawang Shopping Centre
  • October – Completed the rejuvenation works of Tampines Mall
  • 1 November – Completed the acquisition of balance 70.0% stake in Westgate (the “Acquisition”)
  • December – Completed the asset enhancement works of Westgate

100% of the assets used to be unencumbered as of 30th September 2018. As of 31st December 2018, only 89.8% of the assets are unencumbered due to Westgate. S$405.0 million secured bank loans by Infinity Mall Trust due in October 2019.

Overall portfolio occupancy stood at a healthy level of 99.2%.

4Q2018 Financial Results

4Q2018
(S$’000)
4Q2017
(S$’000)
Change
Gross Revenue 180,464 172,402 4.7%
Net Property Income 124,425 119,258 4.3%
Distributable Income 108,137 102,933 5.1%
Distribution Per Unit (“DPU”) (cents) 2.99 2.90 3.1%

FY2018 Results

DPU for FY2018 was 11.50 cents, 3.0% higher than FY2017.

FY2018
(S$’000)
FY2017
(S$’000)
Change
Gross Revenue 697,521 682,469 2.2%
Net Property Income 493,548 478,234 3.2%
Distributable Income 410,675 395,824 3.8%
Distribution Per Unit (“DPU”) (cents) 11.50 11.16 3.0%

 

October 2018 Financial Results Announcement Dates

It is almost coming to the end of the year and I am expecting to receive my last tranche of dividends payout from the REITs I am holding. With the recent announcement of Fed interest rate hike, it impacted the share price of REITs, causing them to decline slightly. For the past week, the stock market was in a sea of red. However, the stock market managed to recover slightly and re-bounced back on Friday, 12th October 2018.

The risk that I am expecting for Frasers Logistics and Industrial Trust has actualized as AUD weakened further against the Singapore dollar (1 AUD to 0.98 SGD). The market has reacted to this and the share price of Frasers Logistics and Industrial Trust fell lower to S$1.04.

Below are the date of results announcement for some of the REITs I am holding in my stock portfolio.

Stock Name Percentage of My Stock Portfolio Date Of Results Announcement
ST Engineering 16% Not applicable
Frasers Logistics and Industrial Trust 15% 5th November 2018
ParkwayLife REIT 11% 25th October 2018
CapitaMall Trust 11% 25th October 2018
Mapletree Commercial Trust 11% 24th October 2018
ComfortDelgro 8% Not applicable
OUE Hospitality Trust 4% Not applicable
The Hour Glass 3% Not applicable
Kingsmen Creative 3% Not applicable
Frasers Commercial Trust 2% 19th October 2018

Looking forward to collecting my dividends!