Capital Comm Trust

CCT today is down 5 cents to $1.64.

Is it really cheap at this current price level ?

I doubt so!
Looking at the past years dpu of 8.7 cents ,
Yield is still not attractive at 5.3% @ 1.64.

Waiting for $1.45 and below to have a minimum yield of 6% or more.

TA wise, it is on a downtrend mode chart patterns.
The current price of 1.64 is trading below its SMA lines which may provide further indication that the price may continue to head lower.

MACD is showing sign of negative divergence and it may continue to head lower.

Short term wise, I think is likely to head lower to retest 1.60 then 1.51 with extension to 1.41 price level.

Not a call to buy or sell.

Please do your own due diligence.

Looking at their financial numbers for the past 5 years, we can notice that the dpu is hovering around the range of 8.5 cents to 9.1 cents.

In fact , the total revenue has been steadily increasing from 262m in 2014 to 344m in 2018. But dpu has indeed stay un-change/remain the same.. Why?

Looking at the diluted EPS , we can notice that the EPS has been generally declining from 7.7 cents to 5.3 cents which could be telling us that the total nos of share has been risen due to issuing of rights share. This has more or less diluted the EPS and as well as the Dpu paying out.

There was a rights issuance being carried out in Oct 2017 at the ratio of 166 : 1000.

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast12MonthsSecurity&F=QWV0PAD0VLIM1HCE&H=a312fe26dbc3efeffa033f44c6ef109fcf026aed3949ef2e7fa52982026b978b


The Gearing seems fine which is hovering around 32% .

Ops cash flow seems quite healthily increasing from 188m of 2014 to 251m in 2018 .

DPU for 1Q2018 was down 9.4% to 2.12 cents versus 2.34 cents last years.

Gross revenue and net property income in 1Q 2018 were higher year-on-year arising from higher gross revenue and net property income from most of the properties. Revenue from Asia Square Tower 2 (“AST2”) offset the loss in income due to the divestments of One George Street, Golden Shoe Car Park and Wilkie Edge.

 (2) In 1Q 2018, CCT retained S$1.6 million of its taxable income available for distribution to Unitholders to be paid out later in FY2018. CCT is committed to distribute 100% of its taxable income available for distribution to Unitholders for the financial year ending 31 December 2018.

 (3) DPU for 1Q 2018 of 2.12 cents was 11.7% lower than that of 1Q 2017 due to the enlarged number of CCT units of 3,611.7 million units as at 31 March 2018 (31 March 2017: 2,969.0 million units), arising from 513.5 million new units issued for the S$700.0 million rights issue on 26 October 2017 (“Rights Issue”), conversion of convertible bonds in FY 2017 and issuance of units for management fees.

 (4) DPU for 1Q 2017 of 2.34 cents was restated for the Rights Issue, in accordance with paragraph 46 of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts”.

 (5) DPU for 1Q 2017 of 1.97 cents was adjusted for the enlarged 3,611.7 million CCT units.