STI ETF Is At 2 Year High, CICT and CLAS Are In Buy Zone!
πππI was thrilled to see that $STI ETF(ES3.SI)$
SReits were in the doldrums ever since the Feds started to increase interest rates. This has impacted SReits as their financing costs are higher.
My SReits were negatively impacted but now I can see light at the end of the dark tunnel.
My best performing SReit currently is $CapLand IntCom T(C38U.SI)$
CICT is the largest SReit with a market capitalisation of SGD 13.7 billion as at December 31 2023. As the largest proxy for Singapore commercial real estate, CICT's portfolio consists of 21 properties in Singapore, 2 properties in Frankfurt Germany and 3 properties in Sydney Australia. CICT is managed by Capitaland Integrated Commercial Trust Management, a wholly owned subsidiary of Capitaland Investment Limited, a leading global asset manager with a strong foothold in Asia.
CICT is ranked number 5 in the STI ETF holdings. CICT pays dividends twice a year. The current dividend yield is 5.07%.
Performance wise CICT is up 3.9% on Friday and in the past 5 days, CICT has risen 6.5%.
CICT's Q1 2024 earnings showed a 6.3% increase in Net Property Income of SGD 293.7 million. It has a portfolio committed occupancy rate of 97%. CICT's Weighted Average Lease to Expiry is 3.6 years. No single tenant contributes more than 5.2% of CICT 's Total Gross Rental Income. CICT' s Gearing ratio is 40%.
CICT is due to report its Half Year Results 2024 on August 13.
I like CICT because of its diversified revenue streams, strong sponsor and steady dividends paid.
$CapLand Ascott T(HMN.SI)$ is the largest lodging trust in Asia Pacific with an asset value of SGD 8.5 billion as at March 31 2024. CLAS's International portfolio comprises of 102 properties with more than 18,000 units in 45 cities across 16 countries in Asia Pacific, Europe and the US as at March 31 2024.
CLAS is a wholly owned subsidiary of $CapitaLandInvest(9CI.SI)$
Performance wise CLAS is up 2.2% in the past 5 days but is still down 9.6% year todate.
CLAS is a great SReit because it stands out to capture the rising "Travel-Entertainment" trend. With the global excitement around major events like concerts and sports, CLAS's focus on locations that are central to these events has shown great results. Take for example the recent global music concert like Taylor Swift 's New Era Concert Tours in Singapore, Tokyo, Melbourne and Sydney.
CLAS' s revenue is diversified across different segments of the hospitality industry such as rental housing and student accommodation apart from its hotel business.
CLAS has increased its FY 2023 Distribution by 16% to 6.57 cents per share through stronger operating performance and new acquisitions.
CLAS' properties saw strong demand as international travel continues to recover. CLAS revenue per available unit (REVPAU) in 2H 2023 reached 103% of prepandemic levels in 2H 2019, increasing by 10% year over year to SGD 157.
CLAS gross profit for 2H 2023 rose 12% year over year to SGD 183.9 million compared to 2H 2022. This is 106% of pre pandemic levels. Revenue for 2H 2023 also increased by 12% to SGD 397.6 million compared to 2H 2022. This was attributed to higher revenue received from CLAS existing portfolio and contributions from its new acquisitions.
The current dividend yield of CLAS is 7%. CLAS is due to report its 1st half earnings on July 26.
Financial Analysts are bullish on CLAS with a Buy Rating, Target price of SGD 1.30.
CICT and CLAS are great SReits with lots of exponential growth ahead. They have been oversold and undervalued. I believe with the imminent rate cut from the Feds, it is time for our good quality SReits to shine once again. In the meantime I get to collect nice juicy dividends while waiting for capital growth. How good is that!
Go Long Go Strong Go CICT and CLAS! πππππππππππππ°π°π°
@Tiger_SG @Tiger_comments @TigerStars @MillionaireTiger @Daily_Discussion @CaptainTiger
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Thatβs a nice one! Congrats!
Finally nice moves these days!
Great article, would you like to share it?
Great article, would you like to share it?