CapitaLand Integrated Commercial Trust (Merger CMT & CCT)

Re: Capital Commercial Trust

Postby ucypmas » Sun May 24, 2009 5:26 pm

Without a rights issue, they will probably end up distributing about 12 cents per share for 2009.

After a 1-for-1 issue, the share base is doubled leading to half of the 12 cents for each share - 6 cents. The rights are issued at 59 cents, therefore the "yield" of the capital committed to buy the rights is about 10%, for the time being.

Of course, you will have to look at this in the context of the whole thing - for an existing shareholder, it means injecting additional money so as to keep the same distribution amount. For a guy who owns the original unit at say $1.20, his yield would have declined from 10% currently, to just over 6.7% including the capital put up for the rights issue.

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Re: Capital Commercial Trust

Postby kennynah » Sun May 24, 2009 5:32 pm

it is net net the same pay out, right?

eg...100 shares at 12 cents payout = 200 shares at 6 cents pay out... isnt it?

what is primary the difference is that the dividend paid out is sourced externally from the rights issue?

eh...i am just learning about all this stuff...so, correct me if i am so out of whack here :shock:
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Re: Capital Commercial Trust

Postby ucypmas » Sun May 24, 2009 9:28 pm

Yes it is the same payout - if an existing unitholder want to keep his dividend on the same level he'll have to subscribe to the rights issue.

I have not seen evidence that a large proportion of the payout is dependent on proceeds from the rights issue - their cash flow are currently just about covering the amount that they are paying out to unitholders.
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Re: Capital Commercial Trust

Postby ichew » Sun May 24, 2009 10:30 pm

hi kenny and ucypmas
yes it shld be same payout.
just tat post-rights, divided by more shares

specifically i am just asking abt their news release article pg 3
http://info.sgx.com/webcoranncatth.nsf/ ... penelement

they wrote
At an attractive post-rights distribution yield of 10.0%5 which is 7.9% higher than the 10-year Singapore Government bond yield as at 21 May 2009, the Rights Issue provides a good opportunity for the unitholders to subscribe for CCT Units.


as my own calculation of post-rights yield is 7-8%, i wonder where i got it wrong

eg FY08 DPU = 11cents
so now with rights, u divide by 2 = 5.5 cents
then u divide by TERP 0.825, u get 6.6%

let's use their 1Q09 DPU = 3.24cents
annualise it is 12.96cents, so we round up la to 13cents
so now with rights, u divide by 2 = 6.5 cents
divide by TERP 0.825, u get 7.8%

the only way they can get their reported 10% is if they do not use their TERP but their rights px $0.59
which if true then i feel CCT like a bit playing with shdrs who nv go in-depth and calc
ma-chiam like the annualised dividend some coys used to tout when they IPO a few yrs back
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Re: Capital Commercial Trust

Postby kennynah » Mon May 25, 2009 1:07 am

like that how? must po mata ?
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Re: Capital Commercial Trust

Postby ichew » Mon May 25, 2009 9:12 am

eh i tink i clarify first then we po mata
cos they r professionals, i am sure i must have got it wrong somewhere
mebbe is becos with this rights money they can reduce interest expenses or costs n somehow *ta-dah* 10%
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Re: Capital Commercial Trust

Postby ichew » Mon May 25, 2009 10:40 am

ok i called cct 6536-1188
she clarified tat "so as not to confuse retail investors, they used the $0.59 as divisor. More sophisticated investors will use the TERP $0.825. Hence ex-rights, the yield shld be 7 plus percent and not 10%"

so no need to po mata la
cos cct did it out of "so as not to confuse with too many prices"
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Re: Capital Commercial Trust

Postby millionairemind » Thu Jul 23, 2009 6:42 am

Published July 23, 2009

CCT distributable income rises 33.2% for Q2

Trust will pay unitholders DPU of 3.33cents for first half of this year


By KALPANA RASHIWALA

CAPITACOMMERCIAL Trust (CCT), one of the island's biggest office landlords, has posted distributable income of $48 million for the second quarter ended Q2 2009, up 33.2 per cent from the same year-ago period.

For the first half of this year, the trust will pay unitholders a distribution per unit (DPU) of 3.33 cents (adjusted for its recent rights issue). On an annualised basis, the payout works out to 6.72 cents, reflecting a distribution yield of 7.72 per cent based on yesterday's closing price of 87 cents.

Q2 revenue rose 34.4 per cent or $25.6 million year-on-year to $99.97 million, due mainly to the acquisition of One George Street and Wilkie Edge as well as higher rental income due to positive rent reversions. Net property income improved 42.2 per cent to $73.3 million.


First-half gross revenue of $197.4 million was 35.6 per cent above that in the same period last year. CCT achieved net property income of $143.2 million in H1 2009, around 42 per cent higher than the same year-ago period. More than half of this increase came from acquisitions and the rest from organic growth.

The H1 2009 net property income was 4.3 per cent above the trust manager's forecast, due largely to higher contribution from Capital Tower, 6 Battery Road, Starhub Centre and Market Street Car Park and the 60 per cent interest in Raffles City, offset partly by lower contribution from One George Street, Robinson Point, Bugis Village and Wilkie Edge. The trust also benefited from lower property tax, utilities and maintenance expenses. As well, borrowing costs were $14.1 million or 22.4 per cent lower than projected due to lowering borrowings and lower average cost of funds than forecast.

Of the $804.2 million net proceeds raised under CCT's recent one-for-one rights issue, $664 million were used to repay part of CCT's borrowings on July 3. Following this, gearing has been trimmed to 31 per cent. CapitaCommercial Trust Management Ltd said it can use up to $140 million of the remaining rights proceeds to repay much of the $235 million borrowings due next year.

In addition, the trust has an untapped balance of $665 million from its $1 billion multicurrency medium term note programme and about $3 billion worth of unencumbered properties - giving it enhanced financial flexiblity.

With its balance sheet bolstered from the rights issue, the immediate priority for CCT going forward is to 'continue to focus on strengthening our fundamentals through astute asset management and prudent capital management to entrench CCT's competitive edge' said CapitaCommercial Trust Management Ltd's (CCTML's) CEO Lynette Leong.

In May and June this year, renewals and new leases for nearly 140,000 sq ft or 4.1 per cent of the trust's portfolio net lettable area were inked at rental rates 45 per cent above the previous rent levels for the space involved on a weighted average basis.

As at end-June 2009, 92 per cent of this year's forecast gross rental income has been locked in with committed leases.

Analysts expect challenging times ahead for office landlords like CCT amidst the massive new office supply to be completed in the next few years from a slew of projects, including Marina Bay Financial Centre, Ocean Financial Centre and 50 Collyer Quay.

However, Ms Leong argued that there is still possibility of positive rental reversion for CCT given that the average monthly passing office rent for its portfolio of $8.14 per square foot as at Q2 is below the average monthly market rental values - of $8.60 psf for prime office space and $10.15 psf for Grade A space as at Q2.
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Re: CapitalMall Trust

Postby millionairemind » Sun Jul 26, 2009 8:26 am

Published July 25, 2009

CapitaMall's Q2 distributable income up 15.8% to $67.9m

By JOYCE HOOI
AFTER weathering half a year of bleak retail news, CapitaMall Trust's (CMT) distributable income rose 15.8 per cent to $67.9 million for the second quarter of 2009, year-on-year.

Gross revenue rose 10.4 per cent to $138.6 million for Q2 ended June 30, up from $125.6 million in Q2 last year.

The increase was driven mainly by the contribution from The Atrium@Orchard which was acquired last August, and higher gross revenue galvanised by the completion of asset enhancement initiatives at Sembawang Shopping Centre.

Net property income for Q2 saw a 12.2 per cent increase year-on-year, to $93.8 million. For the first six months, net property income rose 10.6 per cent to $186.2 million.

Distribution per unit also rose to 2.13 cents in Q2 from 1.85 cents in the same period a year ago. For H1 2009, CMT will be retaining $4.8 million from taxable income available for distribution - $1.5 million from Q2 and $3.3 million from Q1.

'We have, however, committed ourselves to a 100 per cent distribution payout for the whole of 2009, including the retained $4.8 million,' said Lim Beng Chee, chief executive officer of the trust's manager, yesterday.

For the six months ended June 30, the group's gross revenue rose 10.7 per cent year-on-year to $273.2 million while distributable income rose 11.9 per cent to $130.6 million.

Sales and traffic appear to be perking up slightly in the quarter, according to CMT. The group reported a 2.2 per cent increase in Q2's shopper traffic, and a 0.2 per cent increase in tenants' sales, quarter-on-quarter.

Rental renewal rates grew by 1.5 per cent for H1 2009 from preceding rental rates, with overall tenant retention rates of 76.1 per cent. As at June 30, gross revenue locked-in for 2009 stood at over 98 per cent of 2008's gross revenue.

Despite retail sales excluding vehicle sales in May falling 0.3 per cent month-on-month, the rate of decline has been slowing down since February.

'Things are picking up and the slowdown has become less severe. Tenant confidence is also better,' said Mr Lim.

CMT shares rose three cents to close at $1.58 yesterday.

Source: Business Times Singapore
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Re: CapitalMall Trust

Postby winston » Wed Sep 16, 2009 11:41 am

Not vested. From Kim Eng:-

1) CapitaMall Trust – Company Update (Wilson LIEW, DID: 64321454)
Previous Day Closing price: $1.79
Recommendation: HOLD (maintained)
Target price: $1.68 (upgraded from $1.53)

No clear signs of recovery in the retail sector
Total retail sales (excl. motor vehicles) rose marginally in July by 0.1% mom. While certain categories of discretionary spending, such as Furniture & Household Equipment and Watches & Jewellery, have improved, necessity spending under categories such as Department Stores and Supermarkets remained relatively flat.

Suburban retail rents remain resilient
Based on CBRE’s latest report, prime suburban retail rents inched up 0.7% qoq, as opposed to a 2.9% contraction for prime Orchard Road rents in 3Q09. Suburban rents are expected to be more resilient due to more limited availability and their positioning towards necessity spending. This bodes well for CMT, as its portfolio consists mainly of suburban malls.

New malls not in direct competition with CMT’s portfolio
After visiting ION Orchard and Orchard Central, the two new malls opened recently along Orchard Road, we are of the view that the tenant mix of neither malls are similar to that of CMT’s malls. We also noticed that despite the opening of the new malls, shopper traffic remains relatively high at Plaza Singapura and Raffles City, two of CMT’s more centrally-located malls.

Acquisitions unlikely in the next 12 months

It is widely expected that ION Orchard and Vista Xchange are acquisition targets for CMT sometime in the future, but in the near-term, CMT is likely to focus on its committed AEIs. While it is still early days, we believe that Vista Xchange would provide a good fit for CMT’s portfolio, as it is located in the suburbs and is near Buona Vista MRT Station, which serves two MRT lines (East-West Line and Circle Line).

Valuations are not compelling, maintain HOLD
CMT has outperformed both the STI and FSTE REIT Indices over the last three months. We have revised our DDM-derived target price upwards to $1.68, factoring a cost of equity of 8.5% and a beta of 1.0. While we still like the resilience of the portfolio, we think that the price has run ahead of fundamentals. Distribution yield is also no longer attractive. HOLD.
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