Capitamall Trust (CMT) share price in berserk form!

Can anything stop Capitamall Trust (CMT)? CMT share price is simply irresistible as it went on a rampage multi-years bull run. From IPO price of $0.96 to the current $2.60, CMT share price had defied gravity as it consistently rose through the years. Nevertheless, the supreme form of the unit price has somewhat dimmed the yield, which has fallen to 3.7%. Is it the right time to enter CMT?

CapitaLand Mall Trust in explosive form!

While the surging CMT share price is a happy news for existing unitholders, new investors who are keen to invest in Capitamall Trust must be put off at the increasing unit price. In my view, at Price/Book Value of 1.26, I do not think that this counter is overvalued at the moment. In fact, based on my research, Capitamall Trust is considered a low risk counter based on several factors. In this article, I will share my insights on why Capitamall Trust should be a good investment despite the low yield.

CMT share price

CMT share price

The top three major shareholders are Temasek Holdings (29%), BlackRock (8%) and NTUC Enterprise Co-operative (2.5%). With such a stellar group of institutional investors, investing in CapitaLand Mall Trust seems like absolute no-brainer. Interestingly, NTUC used to be a substantial shareholder with 5% stake. However, since September 2018, NTUC had quietly pared down its stake in CapitaLand Mall Trust to the current 2.5%. Despite so, CMT share price had remained resilient and continued to be bullish.

Being the first REIT to be listed by CapitaLand in July 2002, Capitamall Trust went on to  become the largest retail REIT by market capitalisation, $8.8 billion (as at 31 March 2019) in Singapore. In the blink of an eye, seventeen years had passed. Through the years, CMT share price had increased steadily. To put the icing on the cake, the REIT had distributed a grand total of $1.735 per unit during this period.

On the back of the price appreciation and the total distributions, long-term investors must be laughing all the way to the bank. Question now is whether CMT share price is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: June 26, 2019 — 3:07 am

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