(Stocks Discussion) SGX: CapitaLand Commercial Trust (SGX: C61U)?

I have it in my portfolio now. I wished I started investing in it a long time ago but I felt it was too expensive, however it's value just keeps growing. So I decided to stop waiting and buy in whenever there is a slight dip. I intend to buy and hold for the very very long term. However I won't be adding on any more to my current holdings of this REIT as I feel office sector has and will be structurally affected by Work From Home culture. I think companies will shrink their office space by at least 20- 30%.​​​

Here are the key financial metrics from the REIT’s 2020 second-quarter results:

• Gross revenue: Down 8.1% YoY 

• Net property income: Down 9.7% YoY

• Distribution per unit: Down 23.2% YoY to 1.69 Singapore cents

• Gearing: 36.4%

• Portfolio occupancy: 95.2%

Kevin Chee, chief executive of CapitaLand Commercial Trust’s manager, said:

“CCT’s 2Q 2020 results reflected the impact of our portfolio repositioning and rental support for tenants amidst COVID-19. Retaining and supporting our tenants through the COVID-19 challenges remains a priority for CCT. To ensure that our portfolio maintains a sustainable path to future growth, we are focused on completing the asset enhancements of Six Battery Road and 21 Collyer Quay as well as the development of CapitaSpring in 2021. With an improved portfolio positioning and enhanced offerings, CCT will be better placed to meet the evolving workspace needs of our tenants in a post-COVID-19 world.”

As an office REIT, CapitaLand Commercial Trust will be directly impacted by the changing landscape of how we work.

With its core and flex strategy, which involves combining a building’s conventional office space (core) and flexible space (flex) to create innovative workplace solutions, it should be able to still stay relevant in the future.