Asked by Anonymous
Asked on 20 Mar 2019
Discuss anything about share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment!
Here's an update on CCT's financial results based on its 2018 annual report.
Due to the capital appreciation of its existing properties and acquisition of prime office real estate its portfolio value grew at a CAGR of 7.2% over last 10 years from S$5.7 billion in 2009 to S$10.6 billion in 2018.
Due to steady growth in gross revenue from Capital Towoer, RCS & Six Battery Road and injection of revenues from CapitaGreen & Asia Square Tower 2, CCT's achieved a CAGR of 3.7% in gross revenue, increase from S$403.3 million in 2009 to S$557.4 million in 2018.
Distributable income / Distribution per unit (DPU)
Distributable income grew by a CAGR of 5.5% from S$198.5 million in 2009 to S$312.7 million in 2019. Therefore growing its distribution per unit from 7.06 cents in 2009 to 8.70 cents in 2018.
CCT is trading at a PB ratio of 1.07, significantly higher than its 10 year average of 0.92. However, its current dividend yield is 4.53%, which is below its 10 year average of 5.56%. CCT's current gearing ratio is 34.9% which is significantly below MAS's limit of 45%.
Following its acquisition of Galileo (located in Frankfurt's CBD) in Jun 2018, it is expected to contribute its first full financial year of results in 2019. Additionally, the redevelopment of Golden Shoe Car Park is expected to be completed in first half of 2021.
TL;DR: CCT has steady growth in revenue, DPU over the last 10 years. In terms of outlook, the major growth driver will be Golden Shoe Car Park and Galileo. CCT is trading above its P/B ratio average, suggesting it is expensive to buy now.
This is quite a popular REIT also! I will just list the main characteristics and analyses here that I came across through some online research.
5. Future Actions: As of today, CapitalLand is in talks to acquire the $1.5bn Duo Office Tower. This is a 39 Storey office building which is connected to the Duo Galleria Mall which is located in the Bugis are around the CBD. If this acquisiont does come through, C61U might have a more diversified portfolio which can be interesting.