(Stocks Discussion) SGX: CapitaLand Mall Trust (SGX: C38U)?

I hold CMT in my portfolio however I will not be adding on any more to this position as I think covid19 has structurally shifted shopping behaviour online, while not 100%, I think there is at least 20- 40% impact in redction of shopper footfall.

Second quarter 2020 onwards capitalmall trust will start to see the pain.

There are also expiring leases in 2020 and 2021 that may be difficult to replace. Will occupancy rate be able to recover to before the pandemic?

For F&B businesses in malls, social distancing means less sit in traffic. They are one of the highest PSF tenants. More: https://youtu.be/i-JsD_5uDMI

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I just wrote a quick summary on CMT's latest Q2 results. You can read it here : https://sgstockmarketinvestor.com/3-key-takeawa...

CMT just posted its 2020 first-half earnings results yesterday.

Due to rental waivers and the circuit breaker measures, net property income fell around 21% year-on-year to S$216.4 million.

Distributable income tumbled 48.7% to S$109.7 million while distribution per unit (DPU) declined by 49% to 2.96 Singapore cents.

However, some bright sparks are:

1. Portfolio occupancy was still at a healthy figure of above 97%

2. Rental reversion went up 0.1%

3. For the period 19 June to 5 July 2020, most tenants have resumed operations and there has been a steady recovery in shopper traffic as the economy transitioned into Phase Two safe reopening

4. With that, average shopper traffic has recovered to 53% of January 2020 level

5. Underlying all these is that CMT has financial resilience with a healthy gearing ratio of 34.4%, as of end June 2020.

It looks like it would take some time for things to get back to pre Covid-19 levels. But until then, CMT should be able to ride through the tough times due to its strong balance sheet.