CapitaLand Commercial Trust catches my eye when I was researching on REITs that own car parks in their portfolio. If you didn’t know, Golden Shoe Car Park is one of the assets in CapitaLand Commercial Trust portfolio. But in general, CapitaLand Commercial Trust is similar to Keppel REIT which consists of mainly Grade A office assets.
Golden Shoe Car Park is undergoing a redevelopment which is due to complete in 1H2021. The car park will be redevelop into a commercial development in Raffles Place.
Portfolio
CapitaLand Commercial Trust has the following properties in its portfolio.
Capital Tower
CapitaGreen
Six Battery Road
One George Street
Raffles City Singapore
Twenty Anson
HSBC Building
Wilkie Edge
Bugis Village
Golden Shoe Car Park
Do take note that CapitaLand Commercial Trust has fully divested Wilkie Edge as of 11 September 2017.
It is also interesting to know that CapitaLand Commercial Trust has a 17.7% stake in MRCB-Quill REIT, a commercial REIT listed on Bursa Malaysia Securities Berhad.
Occupancy
Based on 3Q2017 financial results, CapitaLand Commercial Trust occupancy rate stood at 98.5%. This is lower than the occupancy rate for Keppel REIT which stood at 99.6%.
There is a good mix of tenant base however I noticed there is a higher concentration of tenants from the banking and financial industry which makes up a total of 31% of its portfolio. The concentration of tenants from the banking and financial industry is similar to Keppel REIT which has a concentration of 44% of its portfolio..
This means that in the event there is a downtrend in the financial sector and banks and financial services companies scale down and relocate to places with lower rent, this will have some impact on CapitaLand Commercial Trust.. Read More
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