facebookHi, Does it make sense to buy CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) now? before the merger? Looking to invest in REITS. Thanks.? - Seedly
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Anonymous

Asked on 26 Sep 2020

Hi, Does it make sense to buy CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) now? before the merger? Looking to invest in REITS. Thanks.?

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3 answers

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Answers (3)

Hi anon,

I'd say you can buy CMT instead of CCT if you are looking at holding long term. CCT unit holders will be given CMT shares plus cash, which may be an issue as you'll end up with odd lots. So it's a lot easier to just buy CMT in my view.

While I won't write an essay on my analysis, personally I feel that the merger is good for the REIT. With bigger headroom to take on more debt, the new REIT will be able to look for more growth opportunities beyond Singapore. We're quite saturated (there's still room, but not much left) for retail malls and having more room for expansion outside of Singapore is quite welcome, as well as a mandate that is not limited to retail, but commercial as well.

2

Jack Poon

29 Sep 2020

Hi,should I buy Cmt now or after the mergers?

Elijah Lee

Elijah Lee

30 Sep 2020

This is really up to you, as individual considerations for buying differ from investor to investor.

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

You can use dividend valuation method to find out the fair value of any REIT!

Its quite a cumberosme process but trust me, it will give you an idea at how much is the rough fair value you should pay for a REIT.

Made an in depth video on dividend valuation method.

3

1 more comments

Maisul

Maisul

29 Sep 2020

I'll probably do one in my youtube channel. so many companies to research on... so little time..... haha. But yeah for sure I will analyze capitaland mall trust!

Jay Hou

Jay Hou

29 Sep 2020

Thank You!

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Wilson Wilson

Wilson Wilson

Level 3. Wonderkid

Answered on 30 Sep 2020

Price probably already factored in liao.....

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