CapitaLand Commercial Trust (CCT)

REITs have had a good run, yield compression may have come to an end

(Nov 18): Yields on 10-year Singapore Government Securities have been rising, albeit gently from a low base (see Chart 1). Similarly, yields on 10-year US Treasuries are also rising, from a low of 1.4% in September to 1.945% as at Nov 11 (see Chart 2). On Oct 30, the US Federal Reserve, through a statement by the Federal Open Market Committee, announced a 25-basis-point cut in the Fed funds rate to 1.5% to 1.75%.

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CapitaLand Commercial Trust could do with more spring in its step

SINGAPORE (Oct 24): Market watchers are divided over CapitaLand Commercial Trust (CCT).

The REIT has a battery of Grade A office buildings in the heart of the central business district. But the office market in Singapore has weakened, with corporates becoming more cautious amid prolonged macroeconomic uncertainty.

At the same time, there have been increasing concerns on the outlook of the co-working space, which CCT has exposure to.

To be sure, CCT has managed to register strong rental reversions despite the cautious outlook.

CapitaLand Commercial Trust posts flat 3Q DPU of 2.20 cents

SINGAPORE (Oct 23): The manager of CapitaLand Commercial Trust (CCT) has announced distribution per unit (DPU) of 2.20 cents for the 3Q19 ended September, unchanged from a year ago.

3Q19 distributable income grew 2.6% to $84.8 million, from $82.7 million a year ago. However, DPU came in flat due to an enlarged unit base.

Gross revenue rose 3.3% to $103.8 million in 3Q19, from $100.5 million a year ago.

Co-working here to stay, even if WeWork does not work out

SINGAPORE (Oct 4): Things have not been working out these past couple of weeks for co-working space operator WeWork.

First, its controversial co-founder and CEO, Adam Neumann, stepped down following concerns about corporate governance and the money-losing startup’s aggressive spending. Then, WeWork withdrew the prospectus for its initial public offering (IPO), pulling the rug from under one of the most hotly anticipated IPOs this year.

WeWork's cancelled IPO to have limited impact on CCT

Singapore (Oct 7): WeWork’s aborted IPO, announced amid questions over corporate governance, mounting losses and unrealistic valuations, has raised questions over whether the office space leasing company can meet its commitments for properties it plans to lease that are not operational yet. Among those in key global cities is 21 Collyer Quay in Singapore, better known by its former name, the HSBC Building.

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Office upcycle, low risk-free rates mask operational challenges for office REITs

(July 29): On July 18, CapitaLand Commercial Trust’s placement units — to raise $220 million, most likely to partially pay for Frankfurt Main Airport Center — were snapped up in less than half an hour, and pricing was tight. CCT’s acquisition of a 94.9% stake in the building costs €251.5 million (about $387.1 million). The building’s initial net property income (NPI) yield is likely to be 4%.

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Can CCT's Frankfurt office acquisition, AEIs lift it to new heights?

SINGAPORE (July 22): CapitaLand Commercial Trust (CCT) has benefitted from an up-cycle in the office market so far this year.

On the back of steady growth from its diversified base of Grade A office buildings, CCT saw its share price climb some 31% from $1.76 at the start of the year to a 52-week peak of $2.31 earlier this month.

In the latest 2Q19 ended June, CCT’s distributable income rose 3.8% year-on-year to $82.4 million, as distribution per unit (DPU) grew 1.9% to 2.20 cents.

CCT raises $220 mil from private placement for Frankfurt office acquisition

SINGAPORE (July 18): CapitaLand Commercial Trust has closed the book of orders for the private placement agreement signed and launched on Wednesday.

CCT’s manager says the placement managed to raise $220 million from the issue of some 105 million new units at $2.095 each.

The issue price represents a discount of 3.7% to the volume weighted average price (VWAP) of $2.1762 per unit for trades done on Wednesday.

It is also at the middle of the $2.043-$2.105 price range set out in the placement agreement.

CapitaLand Commercial Trust declares 1.9% higher 2Q DPU to 2.20 cents on new acquisitions

SINGAPORE (July 17): The manager of CapitaLand Commercial Trust (CCT) has reported a distribution per unit (DPU) of 2.20 cents for 2Q19 ended June 30.

This translates into a 1.9% increase from the 2Q18 DPU figure of 2.16 cents.

Both gross revenue and net property income increased by 3.0% and 0.8% to $100.9 million and $78.4 million respectively.

Consequently, CCT’s distributable income figure rose 3.8% y-o-y, to $82.4 million.

CCT acquires 94.9% stake in Frankfurt office for $387 mil

SINGAPORE (July 17): CapitaLand Commercial Trust (CCT) is acquiring a 94.9% stake in Main Airport Center (MAC) in Frankfurt, Germany, for €251.5 million ($387.1 million).

The acquisition marks CCT’s second asset acquisition in Frankfurt and increase CCT’s overseas exposure from 5% to 8% of its portfolio property value.

Located close to Frankfurt Airport and a 20-minute drive to Frankfurt’s Central Business District, MAC is a freehold multi-tenanted office building with a total net lettable area (NLA) of 60,200 sqm.

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