SGX:C61U

Stock Analysis Report

CapitaLand Commercial Trust

Executive Summary

CapitaLand Commercial Trust (CCT) is Singapore’s first listed commercial real estate investment trust (REIT) with a market capitalisation of approximately S$7.7 billion as at 31 December 2019.


Snowflake Analysis

Unattractive dividend payer and overvalued.


Similar Companies

Share Price & News

How has CapitaLand Commercial Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: C61U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

C61U

-3.5%

SG REITs

-2.8%

SG Market


1 Year Return

2.6%

C61U

10.9%

SG REITs

-5.2%

SG Market

Return vs Industry: C61U underperformed the SG REITs industry which returned 11.9% over the past year.

Return vs Market: C61U exceeded the SG Market which returned -4.4% over the past year.


Shareholder returns

C61UIndustryMarket
7 Day-5.3%-3.5%-2.8%
30 Day-7.9%-2.8%-4.1%
90 Day-2.0%0.3%-3.0%
1 Year7.0%2.6%17.5%10.9%-1.4%-5.2%
3 Year50.4%27.1%46.3%21.4%6.2%-5.1%
5 Year48.5%11.0%54.8%11.6%6.9%-11.2%

Price Volatility Vs. Market

How volatile is CapitaLand Commercial Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CapitaLand Commercial Trust undervalued compared to its fair value and its price relative to the market?

14.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C61U (SGD1.97) is trading below our estimate of fair value (SGD2.3)

Significantly Below Fair Value: C61U is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: C61U is poor value based on its PE Ratio (17.2x) compared to the REITs industry average (14.7x).

PE vs Market: C61U is poor value based on its PE Ratio (17.2x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: C61U's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: C61U is overvalued based on its PB Ratio (1.1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is CapitaLand Commercial Trust forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C61U's earnings are forecast to decline over the next 3 years (-6.3% per year).

Earnings vs Market: C61U's earnings are forecast to decline over the next 3 years (-6.3% per year).

High Growth Earnings: C61U's earnings are forecast to decline over the next 3 years.

Revenue vs Market: C61U's revenue (4.5% per year) is forecast to grow slower than the SG market (5.3% per year).

High Growth Revenue: C61U's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C61U's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has CapitaLand Commercial Trust performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C61U has a large one-off gain of SGD96.8M impacting its December 31 2019 financial results.

Growing Profit Margin: C61U's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: C61U's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: C61U's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C61U had negative earnings growth (-16.9%) over the past year, making it difficult to compare to the REITs industry average (2.6%).


Return on Equity

High ROE: C61U's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CapitaLand Commercial Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: C61U has a high level of physical assets or inventory.

Debt Coverage by Assets: C61U's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: C61U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if C61U has a sufficient allowance for bad loans.

Low Risk Liabilities: C61U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if C61U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: C61U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if C61U has an appropriate level of bad loans.


Next Steps

Dividend

What is CapitaLand Commercial Trust's current dividend yield, its reliability and sustainability?

4.51%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.6%markettop25%5.7%industryaverage5.4%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: C61U's dividend (4.51%) is higher than the bottom 25% of dividend payers in the SG market (2.57%).

High Dividend: C61U's dividend (4.51%) is low compared to the top 25% of dividend payers in the SG market (5.66%).


Stability and Growth of Payments

Stable Dividend: C61U's dividend payments have been volatile in the past 10 years.

Growing Dividend: C61U's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115.3%), C61U's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C61U's dividends in 3 years are forecast to be thoroughly covered by earnings (0.03% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Kevin Chee (50yo)

2.3yrs

Tenure

0

Mr. Tien Jin Chee, also known as Kevin, has been Director of CapitaLand Commercial Trust Management Limited and was its CEO until 2019. Manager of CapitaLand Commercial Trust since November 1, 2017. He ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Tien Jin Chee
CEO & Executive Non-Independent Director of Capitaland Commercial Trust Mgmt Ltd2.3yrsno data0.0030% SGD229.5k
Tai Hua Chua
Chief Financial Officer of CapitaLand Commercial Trust Management Limited10.1yrsno datano data
Peet Mun Chew
Head of Investment & Asset Management - CapitaLand Commercial Trust Management Limited11.9yrsno datano data
Mei Peng Ho
Head of Investor Relations - CapitaLand Commercial Trust Management Limited0yrsno datano data
Sher Ling Chia
Assistant Vice President of Group Communications0yrsno datano data
Su Jin Toh
Company Secretary of CapitaLand Commercial Trust Management Limited0yrsno datano data
Leng Li Tee
Company Secretary of Capitaland Commercial Trust Management Limited2.4yrsno datano data
Ju Lin Lee
Company Secretary of CapitaLand Commercial Trust Management Limited2.1yrsno datano data
Faith Soh
VP of Digital Tenant Services0yrsno datano data
Mun Wah Lo
Vice President of Investor Relations0yrsno datano data

2.4yrs

Average Tenure

Experienced Management: C61U's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tien Jin Chee
CEO & Executive Non-Independent Director of Capitaland Commercial Trust Mgmt Ltd2.3yrsno data0.0030% SGD229.5k
Kok Leng Soo
Chairman of the Board of CapitaLand Commercial Trust Management Limited5.4yrsno data0.0020% SGD155.9k
Neng Tong Yap
Non-Executive Non-Independent Director of CapitaLand Commercial Trust Mgmt Limited0.3yrsno datano data
Yi Young Lam
Independent Non-Executive Director of CapitaLand Commercial Trust Mgmt Limited7.7yrsno datano data
Wai King Ng
Non-Executive Independent Director of CapitaLand Commercial Trust Management Limited2.1yrsno data0.00015% SGD11.6k
Cho Pin Lim
Non-Independent Non-Executive Director of CapitaLand Commercial Trust Mgmt Limited2.8yrsno data0.00039% SGD30.2k
Soon Neo Tan
Non-Executive Independent Director of CapitaLand Commercial Trust Mgmt Limited2.8yrsno data0.00035% SGD27.1k
Bin Hwee Quek
Non-Executive Independent Director of CapitaLand Commercial Trust Management Limited2.1yrsno data0.00025% SGD19.4k

2.5yrs

Average Tenure

51.5yo

Average Age

Experienced Board: C61U's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

CapitaLand Commercial Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CapitaLand Commercial Trust
  • Ticker: C61U
  • Exchange: SGX
  • Founded: 2004
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: S$7.754b
  • Shares outstanding: 3.86b
  • Website: https://www.cct.com.sg

Location

  • CapitaLand Commercial Trust
  • No. 30-01 Capital Tower
  • 168 Robinson Road
  • Singapore
  • 68912
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
C61USGX (Singapore Exchange)YesTrust UnitsSGSGDMay 2004
CPIT.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDMay 2004
C6XDB (Deutsche Boerse AG)YesTrust UnitsDEEURMay 2004

Biography

CapitaLand Commercial Trust (CCT) is Singapore’s first listed commercial real estate investment trust (REIT) with a market capitalisation of approximately S$7.7 billion as at 31 December 2019. Listed on Singapore Exchange Securities Trading Limited (SGX-ST) since May 2004, CCT aims to own and invest in real estate and real estate-related assets which are income-producing and predominantly used for commercial purposes. CCT’s deposited property is approximately S$11.8 billion as at 31 December 2019 comprising a portfolio of eight prime commercial properties in Singapore and two properties in Frankfurt, Germany. The properties in Singapore are Capital Tower, CapitaGreen, Asia Square Tower 2, Six Battery Road, Raffles City (60.0% interest through RCS Trust), One George Street (50.0% interest through OGS LLP), 21 Collyer Quay (HSBC Building) and CapitaSpring (45.0% interest through Glory Office Trust and Glory SR Trust), an upcoming 51-storey integrated development in Raffles Place. The properties in Germany are Gallileo (94.9% interest), in the Banking District of Frankfurt, and Main Airport Center (94.9% interest) near Frankfurt Airport. CCT is included in several indices. These include the Morgan Stanley Capital International, Inc (MSCI) Index, MSCI World ESG Leaders Index, FTSE4Good Index Series (FTSE4Good), the FTSE EPRA Nareit Global Real Estate Index Series, the iEdge SGX Sustainability Index and FTSE Straits Times Index. CCT is managed by CapitaLand Commercial Trust Management Limited, which is a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia’s largest diversified real estate groups. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:30
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.