CapitaLand Integrated Commercial Trust (Merger CMT & CCT)

Re: CapitalMall Trust

Postby ichew » Tue Jan 20, 2009 10:33 pm

Notice of Cessation Of Substantial Shareholding
http://info.sgx.com/webcorannc.nsf/d21c ... enDocument

The Capital Group of Companies sold abt 16.4m sh
From 5.8260 % to 4.8401 %
Units were disposed off through a series of transactions from 06/01/2009 thru 14/01/2009.

No wonder drop so much recently
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Re: Capital Commercial Trust

Postby millionairemind » Wed Jan 21, 2009 6:58 am

Published January 21, 2009

CCT has no plans in pipeline to raise equity

By UMA SHANKARI

CAPITACOMMERCIAL Trust (CCT), Singapore's largest office trust, has no immediate plans to raise equity.

'We don't intend to increase debt in any significant way,' said Lynette Leong, chief executive of CCT's manager, at the trust's Q4 results briefing yesterday. 'If we are not making any acquisitions, we have no need to do that (raise equity).'

CCT shares gained 1.5 cents, or 1.7 per cent, on the news to close at 87.5 cents yesterday, even as the benchmark Straits Times Index fell. Some industry players have said that CCT could issue equity to reduce its gearing ahead of expected falls in asset values during upcoming revaluation exercises.

'CCT has unequivocally stated that it is not planning to raise equity. That provides a lot of differentiation with the other Reits (real estate investment trusts) in the market,' said UOB- Kay Hian analyst Jonathan Koh.

The trust's gearing now stands at 37.6 per cent, and will be maintained at around that level, Ms Leong said. Total debt as at end-December 2008 was about $2.6 billion. By contrast, gearing was 23.9 per cent as at end-December 2007, while total debt then stood at about $1.26 billion.

For the short-term, CCT has some $116 million of debt due in June 2009, but the trust remains confident that it will be able to secure refinancing as it has some eight unencumbered assets worth $2.7 billion in its portfolio. The Reit on Jan 6 announced that it had secured refinancing for $580 million of loans due in March 2009.

CCT also recently abandoned a plan to redevelop the Market Street Car Park, citing the uncertain market outlook and tight credit conditions.

In Q4 2008, CCT saw its distributable income rise 17.4 per cent to $38 million - from $32.3 million a year ago - on higher rental income.

Distribution per unit (DPU) for the three months ended Dec 31, 2008 rose to 2.71 cents, from 2.33 cents for the same three months in 2007. Net property income also rose 47.8 per cent to $65.6 million, from $44.4 million previously.

Revenue in Q4 2008 was boosted by the acquisition of 1 George Street, a 23-storey office block, as well as higher rental income from other properties.

For the full 2008 financial year, CCT's distributable income rose 27.1 per cent to $153 million, from $120.4 million in 2007. DPU climbed from 8.7 cents to 11 cents, while net property income rose 34.2 per cent to $233.5 million.

CCT also wrote down about 3 per cent of its portfolio value to $6.7 billion, from June 2008's $6.9 billion. This translated into a 1.3 percentage point increase in gearing. The lower valuation assumes a fall of about 10 per cent in rentals this year, CCT said.

Analysts said that the results were within expectations and reiterated their positive calls on the stock. ABN Amro and Citigroup issued fresh 'buy' calls, while Macquarie Research rated the stock as an 'outperform'. 'We believe CCT remains a deep value play on the office sector,' said Macquarie analysts Tuck Yin Soong and Elaine Cheong.

Looking ahead, CCT expects to face challenging times due to the adverse economic climate, said Richard Hale, chairman of the trust's manager. 'Our focus continues to be on retaining our tenants and on being proactive in cost containment,' he said.

CCT is forecasting a DPU of 12.34 cents for 2009. The trust's manager is actively engaging tenants for forward lease planning and 79 per cent of the 2009 forecast gross rental income has been locked in with committed leases.
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Re: Capital Commercial Trust

Postby winston » Wed Jan 21, 2009 4:48 pm

Singapore Hot Stocks-CapitaComm Trust gains on DPU increase

SINGAPORE, Jan 21 (Reuters) - Shares of Singapore's largest office landlord CapitaCommercial Trust gained as much as 6.3 percent on Wednesday after the firm said its full-year distribution per unit increased 26 percent.

CapitaCommercial Trust said on Tuesday its full-year 2008 distribution increased 26 percent from 2007 to 11.00 cents per unit and expects 2009 DPU to reach 12.34 cents. [ID:nSN1K90022] "CapitaCommercial Trust looks safe from its results announced yesterday," said a local dealer.

Brokerage firm CIMB maintained CapitaCommercial Trust's rating at "outperform" on Wednesday and raised its target price to S$1.12 from S$1.08.

"Refinancing nightmares in 2009 should ebb with S$650 million of debts refinanced earlier this month," said CIMB analyst Janice Ding, adding that CapitaCommercial Trust is confident of refinancing its remaining S$116 million due in June 2009.

By 0828 GMT, CapitaCommercial Trust rose by 5.7 percent to S$0.925.

The benchmark Straits Times Index fell by 1.25 percent.
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Re: CapitalMall Trust

Postby mocca_com » Thu Jan 22, 2009 6:56 am

realising captial group have been selling singapore stock recently. wonder is it due to expecting a lot of redemption or is it due to there are losing faith in sg companies?
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CapitalMall Trust

Postby millionairemind » Thu Jan 22, 2009 7:28 am

CapitaCommercial Trust
Jan 21 close: $0.93
CIMB-GK Research, Jan 21

SMOOTH ride ahead: Q4 2008 results were in line with the street's expectations and our own. Distribution per unit (DPU) grew 16 per cent y-o-y to 2.71 cents, to form 26 per cent of our forecast for 2008. Gross revenue of $97.2 million was up 56.6 per cent y-o-y, mainly on contributions from One George Street. Full-year DPU of 11 cents was in line with expectations.

As at Dec 1, 2008, CapitaCommercial Trust (CCT) wrote down 3 per cent of its asset values across its portfolio over their last valuation on June 1. StarHub Centre was affected the most, by 7.9 per cent, and Raffles City the least, at 1.4 per cent. After the write-down, asset leverage moved up to 37.3 per cent from 35.9 per cent in Q3 2008.

Committed occupancy on a portfolio basis was 96.2 per cent, down from 98.9 per cent in Q3 2008. The drag was attributed to Wilkie Edge which was legally completed in December and only 70 per cent pre-committed. Average monthly rent for CCT's portfolio was $7.44 per square foot (psf) in the quarter, up moderately from $7.20 psf in Q3.

Refinancing nightmares in 2009 should ebb with $650 million of debt refinanced earlier this month. Management is confident of refinancing the remaining $116 million due in June 2009. With eight unencumbered assets on hand, there should be sufficient financial flexibility for its upcoming refinancing negotiations. Management said there are no plans for equity-raising in the 'immediate' term, although it would not define its duration.

Weakening office demand has mostly been factored into our assumptions in the form of recession-level occupancy levels (80-85 per cent) and weakening rents.

Maintain 'outperform'; TP raised to $1.12 from $1.08: Concerns over widespread rights or equity issuance by real estate investment trusts (Reits) sprang after A-Reit's surprise recapitalisation last week, sending Reits' prices down. With a P/B of 0.29 times, CCT remains a value stock with forward yields of 13 per cent.
OUTPERFORM
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Re: Capital Commercial Trust

Postby winston » Thu Jan 22, 2009 1:25 pm

From CIMB:-

• Met expectations. 4Q08 results were in line with Street and our expectations. DPU of 2.71cts grew 16% yoy to form 26% of our forecast for FY08. Gross revenue of S$97.2m was up 56.6% yoy mainly on contributions from One George Street. Fullyear DPU of 11cts was in line.

• Moderate asset write-down of 3%. As at 1 Dec 08, CCT wrote down 3% of its asset values across its portfolio over their last valuation on 1 Jun 08. StarHub Centre was affected the most, by 7.9% and Raffles City, the least, at 1.4%. After the write-down, asset leverage moved up to 37.3% from 35.9% in 3Q08.

• Portfolio occupancy down to 96.2%. Committed occupancy on a portfolio basis was 96.2%, down from 98.9% in 3Q08. The drag was attributed to Wilkie Edge which was legally completed in Dec 08 and only 70% pre-committed. Average monthly rent for CCT’s portfolio was S$7.44 psf in the quarter, up moderately from S$7.20psf in 3Q08.

• No equity raising in “immediate” term; downside factored in. Refinancing nightmares in 2009 should ebb with S$650m of debt refinanced earlier this month. Management is confident of refinancing the remaining S$116m due in Jun 09. With eight unencumbered assets on hand, there should be sufficient financial flexibility
for its upcoming refinancing negotiations. Management said there are no plans for equity-raising in the “immediate” term, although it would not define its duration.

Weakening office demand has mostly been factored into our assumptions in the form of recession-level occupancy levels (80-85%) and weakening rents.

• Maintain Outperform; target price raised to S$1.12 (from S$1.08). We further refine our assumptions, factoring in rental declines from actual 2008 passing rents. We also introduce FY11 forecasts. Our DPU estimates for 2009-10 increase by 0.8- 3.6%. Our DDM-derived target price also rises to S$1.12 from S$1.08 (unchanged discount 10.4%).

Concerns over widespread rights or equity issuance by REITs sprang after A-REIT’s surprise recapitalisation last week, sending REITs’ share prices down. With a P/BV of 0.29x, CCT remains a value stock with forward yields of 13%. Maintain Outperform.
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Re: Capital Commercial Trust

Postby winston » Thu Jan 22, 2009 1:27 pm

From Kim Eng:-

1) CapitaCommercial Trust – FY08 Results (Wilson LIEW, DID: 64321454)
Previous Day Closing price: $0.875
Recommendation: BUY (maintained)
Target price: $1.64 (reduced from $1.87)

Growth delivered
CCT posted a 17.4% yoy growth in its 4Q08 distributable income. Its distribution per unit for 4Q08 is 2.7 cents, bringing FY08 total DPU to 11 cents, representing a 12.8% distribution yield, largely in line with expectations. This came at the back of a robust 40% growth in gross revenue due largely to the acquisition of One George Street and positive rental reversion.

Confidence in FY09 distribution
CCT’s management is confident of delivering its forecast DPU of 12.34 cents for FY09, having already locked in 79% of the forecast gross rental income. DPU growth will be contributed by the income from newly completed Wilkie Edge and further positive rental reversions given the low current portfolio passing rent of $7.44 psf.

Equity fund raising soon? Highly unlikely
Following the successful refinancing of the $580m CMBS maturing in March this year, CCT’s management does not see the immediate need for equity fund-raising. The refinancing has freed up 8 assets from encumbrances, valued at $2.7 bn in all. We are of the view that these assets could be pledged against loans of nearly $1bn, even if capital values decline 30%.

More assurance for REITs
CCT’s gearing stands at 37.6%, comfortably under the 60% that is allowed under the Property Fund Guidelines governed by the Monetary Authority of Singapore (MAS) for a credit-rated REIT. The MAS has clarified that if the leverage increased as a result of declining property values, it does not amount to a regulatory breach.

Bluechip on the cheap. Reiterate BUY.
Despite prolonged concerns related to the economic downturn and the looming new office supply, we still like CCT for its strong asset quality and room for positive rental reversion. We have revised our rental forecasts downwards, reducing our target price to $1.64, at the back of a terminal growth rate of 1%. Reiterate BUY.
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Capital Commercial Trust

Postby millionairemind » Fri Jan 23, 2009 7:43 am

CapitaMall Trust DPU dips in Q4
Trust exploring options to refinance $876.2m of debt

By UMA SHANKARI

CAPITAMALL Trust (CMT), Singapore's biggest property trust, said that distributable income for the fourth quarter fell 2.1 per cent as it faced higher finance costs.

Distributable income for the three months ended Dec 31, 2008, was $61 million, down from $62.3 million in 2007. Distribution per unit (DPU) fell to 3.65 cents, from 3.82 cents in 2007.

The trust is a unit of Singapore's largest property group, CapitaLand. Q4 net property income rose 11.1 per cent to $85.9 million, from $77.3 million in Q4 2007.

Turnover was boosted by Atrium@Orchard, which CMT bought in August 2008, as well as higher revenue from new and renewed leases and from the completion of asset enhancement works.

But finance costs rose 61.4 per cent to $30 million, causing a year-on- year drop in Q4 net income. The increased finance costs were partly due to the convertible bonds CMT issued to fund the Atrium acquisition.

For the full 2008 financial year, distributable income rose 12.9 per cent to $238.4 million, up from $211.2 million in 2007. DPU rose to 14.29 cents from 13.34 cents.

'The majority of the retail trades across CMT's portfolio of malls are still faring well for full year 2008, although there were some signs of weakening in discretionary spending towards end-2008,' said Lim Beng Chee, chief executive of the trust's manager.

Last year, CMT signed 363 new and renewed leases at average rents 9.3 per cent higher than preceding rentals, which were typically committed some three years ago.

Gross rental revenue locked-in for 2009 already exceeds 87 per cent of 2008's total gross revenue. 'This will underpin the net property income for 2009,' said the trust.

Mr Lim remains confident that CMT's tenants will continue to stay on in its malls, even as retail sales are expected to drop this year.

The trust will take a pro-active approach to engage its tenants and meet up with them more often, he said.

Mr Lim also pointed out that turnover rent (where CMT takes a cut of tenants' sales) contributed just 2-4 per cent of CMT's total gross revenue in 2008.

The trust is also exploring options to refinance $876.2 million of debt before it matures in the second half of 2009.

CMT hopes to refinance all debt in one go and is already in talks with banks. Analysts said that refinancing should not be a problem as another one of CapitaLand's Reits, CapitaCommercial Trust, was able to refinance at attractive rates recently.

CMT, which owns 14 retail malls in Singapore, last quarter said that it will put some upgrading plans for its properties on hold. The trust in May 2008 also raised its target asset size to $9 billion by 2010 from an earlier forecast of $8 billion.

Yesterday, CMT said that total assets rose 1.9 per cent to $7.2 billion on the latest revaluation.

'CMT remains one of our top picks in the S-Reit (Singapore real estate investment trust) space,' said Macquarie Research analysts Tuck Yin Soong and Elaine Cheong yesterday as they issued an 'outperform' call on the stock. CMT shares lost two cents to close at $1.48 yesterday.
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Re: CapitalMall Trust

Postby millionairemind » Sat Jan 24, 2009 7:05 am

CapitaMall Trust
Buy

Citigroup
Jan 23 close: $1.46

RESULTS in line: For Q4 2008, CapitaMall Trust (CMT) reported a distribution per unit (DPU) of 3.65 cents, bringing total DPU for 2008 to 14.29 cents. Gross rental revenue was up 3.6 per cent q-o-q while net property income was down 1.1 per cent. The rise in revenue was due largely to full quarter contribution from The Atrium while the bulk of the rise in cost was due to Raffles City, which recorded a 31 per cent rise in operating costs in Q4 due to higher property tax and one-off charges.

Mall performance remains healthy: CMT malls are still enjoying close to full occupancy on average and shopper traffic in Q4 is still up 10.3 per cent y-o-y. Rental renewal rates for 2008 registered a growth of 9.3 per cent over preceding rental rates. However, there are signs of discretionary spending weakening towards end-2008.

Asset values rose by almost 2 per cent: As at Dec 31, 2008, CMT has an average cost of debt of 3.4 per cent and gearing of 43.2 per cent. Based on committed leases, 87 per cent of 2009 revenue has been locked in. Driven by asset enhancement, CMT portfolio valuation rose $135.5 million to $7.17 billion despite a capitalisation rate rise of between 15 and 25 basis points. As a result, NAV rose to $2.41 from $2.21.

DPU cut by 7-10 per cent and target price cut to $2.51. On the back of the worsening economic situation, we have cut both our rentals and occupancy assumptions for the malls going forward. We assume rental renewal rates about 5 per cent lower than preceding rentals for 2009 and 2010 and occupancy rates at selected malls at 95 per cent. We are however, maintaining our 'buy' on CMT as its income stream is relatively defensive.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: CapitalMall Trust

Postby millionairemind » Mon Feb 09, 2009 2:43 pm

Another Rights Issue.. :?
CMT Rights Issue to raise approximately S$1.23 billion
Rights issue price of S$0.82 at 43.4% discount to closing price
http://info.sgx.com/webcoranncatth.nsf/ ... penelement
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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