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

Mediocre balance sheet with questionable track record.


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%

SGX:C61U

-0.7%

SG REITs

1.4%

SG Market


1 Year Return

21.7%

SGX:C61U

12.5%

SG REITs

0.2%

SG Market

C61U outperformed the REITs industry which returned 12.5% over the past year.

C61U outperformed the Market in Singapore which returned 0.2% over the past year.


Share holder returns

C61UIndustryMarket
7 Day0.5%-0.7%1.4%
30 Day2.4%1.8%2.0%
90 Day0%1.4%-1.7%
1 Year27.6%21.7%19.8%12.5%4.3%0.2%
3 Year62.0%35.2%42.4%17.7%17.3%4.8%
5 Year80.0%34.0%60.5%15.4%9.9%-8.3%

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 based on future cash flows and its price relative to the stock market?

20.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CapitaLand Commercial Trust's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CapitaLand Commercial Trust's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CapitaLand Commercial Trust is overvalued based on earnings compared to the SG REITs industry average.

CapitaLand Commercial Trust is overvalued based on earnings compared to the Singapore market.


Price Based on Expected Growth

CapitaLand Commercial Trust is poor value based on expected growth next year.


Price Based on Value of Assets

CapitaLand Commercial Trust is overvalued based on assets compared to the SG REITs industry average.


Next Steps

Future Growth

How is CapitaLand Commercial Trust expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CapitaLand Commercial Trust's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

CapitaLand Commercial Trust's earnings are expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

CapitaLand Commercial Trust's revenue growth is positive but not above the Singapore market average.

CapitaLand Commercial Trust's earnings growth is positive but not above the Singapore market average.

CapitaLand Commercial Trust's earnings growth is positive but not above the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

CapitaLand Commercial Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

CapitaLand Commercial Trust's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

CapitaLand Commercial Trust's 1-year earnings growth is negative, it can't be compared to the 5-year average.

CapitaLand Commercial Trust's 1-year earnings growth is negative, it can't be compared to the SG REITs industry average.


Return on Equity

CapitaLand Commercial Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CapitaLand Commercial Trust used its assets less efficiently than the SG REITs industry average last year based on Return on Assets.


Return on Capital Employed

CapitaLand Commercial Trust has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CapitaLand Commercial Trust's financial position?


Financial Position Analysis

CapitaLand Commercial Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CapitaLand Commercial Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CapitaLand Commercial Trust's level of debt (37.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.8% vs 37.9% today).

Debt is not well covered by operating cash flow (10.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

4.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CapitaLand Commercial Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.51%).

CapitaLand Commercial Trust's dividend is below the markets top 25% of dividend payers in Singapore (5.63%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (3571.4x coverage).


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?

2.0yrs

Average management tenure


CEO

Kevin Chee (50yo)

1.8yrs

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

2.0yrs

Average Tenure

The tenure for the CapitaLand Commercial Trust management team is about average.


Board Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

The average tenure for the CapitaLand Commercial Trust board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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: 1.8yrs
  • Faith Soh

    VP of Digital Tenant Services

    • Tenure: 0yrs
  • Peet Mun Chew

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

    • Tenure: 11.5yrs
  • Anne Chua (56yo)

    Chief Financial Officer

    • Tenure: 9.7yrs
  • 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: 1.7yrs
  • Jason Toh

    Company Secretary of CapitaLand Commercial Trust Management Limited

    • Tenure: 0yrs
  • Leng Li Tee

    Company Secretary of Capitaland Commercial Trust Management Limited

    • Tenure: 2yrs

Board Members

  • Kok Leng Soo (67yo)

    Chairman of the Board of CapitaLand Commercial Trust Management Limited

    • Tenure: 5yrs
  • Kevin Chee (50yo)

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

    • Tenure: 1.8yrs
  • Yi Young Lam (46yo)

    Independent Non-Executive Director of CapitaLand Commercial Trust Mgmt Limited

    • Tenure: 7.3yrs
  • Chee Koon Lee (44yo)

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

    • Tenure: 1.7yrs
  • Wai King Ng (52yo)

    Non-Executive Independent Director of CapitaLand Commercial Trust Management Limited

    • Tenure: 1.7yrs
  • Andrew Geoffrey Lim (49yo)

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

    • Tenure: 2.3yrs
  • Jessica Tan (52yo)

    Non-Executive Independent Director of CapitaLand Commercial Trust Mgmt Limited

    • Tenure: 2.3yrs
  • Bin Hwee Quek (61yo)

    Non-Executive Independent Director of CapitaLand Commercial Trust Management Limited

    • Tenure: 1.7yrs

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$8.212b
  • 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 Analysis2019/09/17 12:31
End of Day Share Price2019/09/17 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.