CapitaLand Commercial Trust (CCT share price) into the unknown
Amid the rally in the S-REIT sector, CapitaLand Commercial Trust share price is also enjoying a bullish run. The counter surged from $1.80 in January 2019 to a high of $2.30 in July 2019. Since then, CCT share price had cooled off a bit and maintained around the $2.00 level. Is the run of CCT share price sustainable?
Hands down, I like this counter and could not find much fault on the management. However, certain aspect of the Group’s financial cashflow made me wonder if the bullish run of CCT share price is sustainable in the long run.
Being Singapore’s first and largest listed commercial REIT, CCT is considered a blue chip among the S-REITs. Currently, the market capitalization stands at $7.8 billion. The portfolio consists of eight prime commercial properties in Singapore and two properties in Frankfurt, Germany. The assets are valued about $11.6 billion as of $11.6 billion. In addition to this, CCT also owns approximately 10.9% of MRCB-Quill REIT, a commercial real estate investment trust listed in Malaysia.
Despite the quality assets of CCT, the biggest concerns of investors must be the seven-year lease, commencing in early 2Q 2021 with WeWork Singapore for the entire building of …
The post CapitaLand Commercial Trust (CCT share price) into the unknown appeared first on SG Wealth Builder.