Three Things To Like About CapitaMall Trust

It is hard to get away from CapitaMall Trust (SGX: C38U) when you in Singapore. That is probably the first thing to like about the company.

Whether you are wandering around touristy Orchard Road or looking for a bargain in Jurong, chances are you will probably step inside one of CapitaMall Trust’s many shopping centres. And more than likely spend money whilst you are there.

The company runs 16 outlets in Singapore. It also owns significant stakes in shopping malls in Shanghai, Beijing, Wuhu and Hohhot too.

The company has also demonstrated an ability to grow without losing a focus on efficiency. That is the second thing to like about CapitaMall Trust – scalability.

In 2001, when CapitaMall Trust was first established as a property fund, it had three malls in its portfolio. They were Tampines Mall, Junction 8 and Funan DigitalLife Mall. At the time, it generated S$8 of revenue for every $100 of assets employed. Today, the Asset Turnover is an equally respectable 7%.

The third thing to like about CapitaMall Trust is growth through differentiation.

Through careful planning every mall is different to the next. Funan DigitalLife Mall, for instance, is a go-to mall for Information Technology, while IMM Building is one of the largest outlet malls in Singapore.

Elsewhere, Bugis Junction and Bugis+ are destinations of choice for the young and trendy, while Clarke Quay is so well known that it just doesn’t need any introduction.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.