https://links.sgx.com/FileOpen/CL%20Investor%20Day%202019.ashx?App=Announcement&FileID=587892
Link to Capitaland 2019 investor day. Shows company long term planning and fact book of its business. No longer a property development but mainly as a fund manager managing private funds or REITS. Generate recurring income which is the main income contributor. Top 10 real estate manager globally with Blackstone at the TOP.
With the merger with Ascendas, Capitaland has grown in scale and harder to fail if properly managed. Currently integrating both business together to achieve the forecast synergy. This explains the merger between Ascott REIT and Ascendas hospitality trust to become a large hospitality trust which will be included in a REIT index and potential for trading at higher multiples.
With its REITs vehicle, its a good avenue for divesting its properties for gains. Debt/equity is ~0.7 which is acceptable.
https://investor.capitaland.com/newsroom/20191105_070643_C31_GDOVJM12R2G5FJSU.2.pdf
3rdQ 2019 financial results
Profit from operation = 941M vs finance cost of 234M. Coverage is 4x. Net profit is 527MM. Coverage is 2.2x.
Coverage ratio is typical for a REIT though the dividend yield is much lower but has much diversified holdings in different sectors and geographical area.
Cash in hand is 5.6B vs short term debt of 5.5B and long term debt of 27B.
Investment properties is 48B and investment/JV is 13B while development properties for sale is 7.7B
Equity is 39B. Company is not leveraged compared to Fraser properties.
Exposure to China is large at around 30-40%. Singapore is another 30%. REmaining is Europe and other developing countries. Good entry point if its stock price tank to ~$3 which is its long term average.
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