SGX:C61U

Stock Analysis Report

CapitaLand Commercial Trust

Executive Summary

CapitaLand Commercial Trust (CCT) is Singapore’s first and largest listed commercial real estate investment trust (REIT) with a market capitalisation of approximately S$8.1 billion as at 30 June 2019.

Snowflake

Fundamentals

Questionable track record unattractive dividend payer.


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


Market Performance


7 Day Return

-0.5%

C61U

0.5%

SG REITs

1.1%

SG Market


1 Year Return

19.8%

C61U

17.7%

SG REITs

0.9%

SG Market

Return vs Industry: C61U exceeded the SG REITs industry which returned 17.7% over the past year.

Return vs Market: C61U exceeded the SG Market which returned 0.9% over the past year.


Shareholder returns

C61UIndustryMarket
7 Day-0.5%0.5%1.1%
30 Day-3.3%1.9%-1.9%
90 Day-4.2%0.8%-6.5%
1 Year25.6%19.8%24.9%17.7%4.9%0.9%
3 Year56.6%30.8%44.4%19.3%15.2%2.9%
5 Year70.9%27.2%62.2%16.7%11.2%-7.1%

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?

19.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: C61U (SGD2.06) is trading above our estimate of fair value (SGD1.66)

Significantly Undervalued: C61U is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: C61U is poor value based on its PE Ratio (19.8x) compared to the REITs industry average (15.8x).

PE vs Market: C61U is poor value based on its PE Ratio (19.8x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: C61U is poor value based on its PEG Ratio (8.5x)


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 17 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C61U's forecast earnings growth (2.3% per year) is above the savings rate (2.3%).

Earnings vs Market: C61U's earnings (2.3% per year) are forecast to grow slower than the SG market (5.7% per year).

High Growth Earnings: C61U's earnings are forecast to grow, but not significantly.

Revenue vs Market: C61U's revenue (4.8% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: C61U's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: C61U's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

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

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: C61U's earnings have grown by 7.6% 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 (-28.4%) over the past year, making it difficult to compare to the REITs industry average (0.3%).


Return on Equity

High ROE: C61U's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: C61U's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: C61U has improved its Return on Capital Employed over the past 3 years.


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?

4.28%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.5%markettop25%5.6%industryaverage5.2%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: C61U's dividend (4.28%) is higher than the bottom 25% of dividend payers in the SG market (2.46%).

High Dividend: C61U's dividend (4.28%) is low compared to the top 25% of dividend payers in the SG market (5.56%).

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 (112.8%), 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

What is the CEO of CapitaLand Commercial Trust's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Kevin Chee (50yo)

1.9yrs

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 ...


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: C61U's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

51.5yo

Average Age

Experienced Board: C61U's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: C61U insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$31,65026 Sep 19
Cho Pin Lim
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Non-Executive Director of CapitaLand Commercial Trust Mgmt Limited
Shares15,000
Max PriceS$2.11
SellS$964,06702 Aug 19
BlackRock, Inc.
EntityCompany
Shares464,700
Max PriceS$2.07

Ownership Breakdown


Management Team

  • Kevin Chee (50yo)

    CEO & Executive Non-Independent Director of Capitaland Commercial Trust Mgmt Ltd

    • Tenure: 1.9yrs
  • Faith Soh

    VP of Digital Tenant Services

    • Tenure: 0yrs
  • Peet Mun Chew

    Head of Investment & Asset Management - CapitaLand Commercial Trust Management Limited

    • Tenure: 11.6yrs
  • Anne Chua (56yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
  • Mun Wah Lo

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Mei Peng Ho

    Head of Investor Relations - CapitaLand Commercial Trust Management Limited

    • Tenure: 0yrs
  • Sher Ling Chia

    Assistant Vice President of Group Communications

    • Tenure: 0yrs
  • Audrey Lee

    Company Secretary of CapitaLand Commercial Trust Management Limited

    • Tenure: 1.8yrs
  • Jason Toh

    Company Secretary of CapitaLand Commercial Trust Management Limited

    • Tenure: 0yrs
  • Leng Li Tee

    Company Secretary of Capitaland Commercial Trust Management Limited

    • Tenure: 2.1yrs

Board Members

  • Kok Leng Soo (67yo)

    Chairman of the Board of CapitaLand Commercial Trust Management Limited

    • Tenure: 5.1yrs
  • Kevin Chee (50yo)

    CEO & Executive Non-Independent Director of Capitaland Commercial Trust Mgmt Ltd

    • Tenure: 1.9yrs
  • Jonathan Yap (51yo)

    Non-Executive Non-Independent Director of CapitaLand Commercial Trust Mgmt Limited

    • Tenure: 0yrs
  • Yi Young Lam (46yo)

    Independent Non-Executive Director of CapitaLand Commercial Trust Mgmt Limited

    • Tenure: 7.3yrs
  • Wai King Ng (52yo)

    Non-Executive Independent Director of CapitaLand Commercial Trust Management Limited

    • Tenure: 1.8yrs
  • Andrew Geoffrey Lim (49yo)

    Non-Independent Non-Executive Director of CapitaLand Commercial Trust Mgmt Limited

    • Tenure: 2.4yrs
  • Jessica Tan (52yo)

    Non-Executive Independent Director of CapitaLand Commercial Trust Mgmt Limited

    • Tenure: 2.4yrs
  • Bin Hwee Quek (61yo)

    Non-Executive Independent Director of CapitaLand Commercial Trust Management Limited

    • Tenure: 1.8yrs

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$7.907b
  • 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 and largest listed commercial real estate investment trust (REIT) with a market capitalisation of approximately S$8.1 billion as at 30 June 2019. List ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:31
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.