How to analyse REITS annual report for Fundamentals?

My first time reading through financial statement Of Capitaland vs Capitaland Int Comm Trust(CICT) in REITS context, queries for example:

1) under Capitaland, there is “group” and “company”. What is the key concept or relationship?

2) under CICT, statement of total return did not include “company/trust” . Why is it so?

3) what’s the key criteria to compare “group” vs “trust” in the financial statement? Is it usually a relativity? Anything to take note in particular?

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Samantha Ong

15 Apr 2021

Seedly Student Ambassador 2020/21 at Seedly

If you are looking at buying REITs which is a trust, companies have different financial results and presentations for the various trusts they offer. For example, under Capitaland, there are around 6 REITs focusing on the different real estate segments like retail, residential, logistics, etc so each will have its own set of financial results.

If as a whole, you are looking at buying CapitaLand Limited stock/ looking at the future strategy of the company, then it will be good to look at the group financials and presentation.

Hope this helps :)

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Sudhan

15 Apr 2021

Hi anon, as investors, we focus on the group level as we want to have a holistic view of the numbers. Group includes all entities under CapitaLand Ltd whereas company only refers to a specific entity.

Similarly, for CICT, we look at the group level for a complete picture.

If you wish to learn how to read an annual report, you can check out the article we posted here: https://blog.seedly.sg/reading-sgx-listed-compa...

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