CapitaLand Mall Trust (SGX: C38U) is one of the cool listed entities in Singapore that shares webcasts and/or transcripts of their quarterly earnings presentations (the link is here). There may be useful and new information investors can pick out from the webcasts and transcripts. In late January 2016, CapitaLand Mall Trust had released its earnings for the year and quarter ended 31 December 2015. I had spent some time listening to the webcast for the earnings release and noted six important takeaways for investors. But before I share them, here’s a quick background of CapitaLand Mall Trust for some context…
There may be useful and new information investors can pick out from the webcasts and transcripts. In late January 2016, CapitaLand Mall Trust had released its earnings for the year and quarter ended 31 December 2015. I had spent some time listening to the webcast for the earnings release and noted six important takeaways for investors.
But before I share them, here’s a quick background of CapitaLand Mall Trust for some context later. CapitaLand Mall Trist is a real estate investment that owns stakes in many shopping malls in Singapore including Raffles City, Plaza Singapura, and Bugis Junction. If you own units of the REIT, it gives you partial ownership to all the real estate it owns. You can read more about CapitaLand Mall Trust in here.
With that, here are my notes:
- Wilson Tan, the chief executive of the REIT’s manager, kicked off the earnings briefing with a cheerful message. He felt that the audience’s mood was a little sober at the start and he hoped that the results will put a smile on the faces of the REIT’s unitholders.
- As part of this presentation, Tan noted that CapitaLand Mall Trust’s yield had consistently outperformed the five-year and ten-year Singapore government bond yields over the past five years. Based on its performance, Tan said that the REIT could be considered as a safe, secure, and sustainable investment.
- The five biggest revenue contributors for CapitaLand Mall Trust are Plaza Singapura, Bugis Junction, Tampines Mall, IMM Building, and Junction 8. Collectively, the quintet made up 57% of the REIT’s 2015 revenue. Later on, Tan said that IMM Building was the largest outlet mall in Singapore.
- CapitaLand Mall Trust drew-down $646 million in term loans to finance the acquisition of Bedok Mall, which was completed on 1 October 2015. The term loans were partially repaid with $188 million in proceeds from the sale of Rivervale Mall, also in October 2015. The nett effect is that the REIT’s aggregate debt had grown from 33.8% in 30 September 2015 to 35.4% in 31 December 2015. For perspective, Bedok Mall contributed revenue of $14 million to the REIT in the fourth-quarter of 2015; CapitaLand Mall Trust had total revenue of S$180 million in the same period.
- Speaking of debt, CapitaLand Mall Trust had managed to maintain its interest coverage at 4.8 times and average cost of debt at 3.3%; this comes despite its aggregate leverage increasing as mentioned earlier.
- My colleague Sudhan P had written in an earlier article that shopper traffic at CapitaLand Mall Trust had increased by 4.9% in 2015. Tan attributed the increase to the REIT’s marketing promotions and loyalty program.
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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 contributor Chin Hui Leong doesn’t own shares in any companies mentioned.