CapitaLand Wants to Marry Two of Its Biggest REITs

News about CapitaLand Mall Trust

The Singapore REIT market is in full consolidation swing, and CapitaLand is once again at the helm as it seeks to merge CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) together. The plan, as explained by the published presentation, would see CCT unitholders receiving 0.72 CMT share and S$0.259 for each CCT unit they hold.

The operation is expected to be DPU accretive to unitholders of both trusts, as well as improve the risk profile of the combined entity. The resulting trust would be the largest REIT in Singapore and the third largest in the APAC region.

The merger will require a vote of unitholders of each trust and is expected to be completed by June 2020.

CapitaLand Mall Trust
Price1.620 SGD
NAV2.070 SGD
Yield (4 quarters)7.39%
Gearing32.9%