Here are some of the reasons why investors like CAPITALAND MALL TRUST.
- CAPITALAND MALL TRUST is Singapore's first and largest REIT.
- The trust has considerable number of heartland malls and some which are located at city centre. Traffic flow in these malls are healthy. Heartland malls are where most people patronize for grocery shopping, food and entertainment. In my opinion, whether economy is doing good or not, such expenditure is necessary, hence revenues for mall tenants are less volatile to market fluctuation.
- Rental revenues are diversified.
- At the moment, the annualized distribution yield is around 5.49% (based on annualized DPU of 10.87 cents and closing price of $1.98 on 14th Aug 2015).
- Gearing of 33.7% is still reasonable and interest coverage is still healthy.
As at 30th June 2015,
Aggregate leverage: 33.7%
Interest coverage: 4.6x
Average term to maturity: 6.1 years
Average cost of debt: 3.3%
Source: CAPITALAND MALL TRUST