Understanding CapitaLand Integrated Commercial Trust's Dividend Trends
CapitaLand Integrated Commercial Trust (CPAMF, Financial) recently announced a dividend of $0.06 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-02-14. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into CapitaLand Integrated Commercial Trust's dividend performance and assess its sustainability.
What Does CapitaLand Integrated Commercial Trust Do?
CapitaLand Integrated Commercial Trust was established following the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust in October 2020. The trust has a diversified portfolio of 26 properties valued at SGD 13.7 billion as of Dec. 31, 2023. These include offices (mainly in the central business district), retail malls (includes urban and suburban malls), and integrated development. Most of its properties are located in Singapore, with assets in Germany and Australia making up less than 10% of its portfolio. The trust is externally managed by CapitaLand Integrated Commercial Trust Management; parent CapitaLand retains a 23% stake in CICT.
A Glimpse at CapitaLand Integrated Commercial Trust's Dividend History
CapitaLand Integrated Commercial Trust has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down CapitaLand Integrated Commercial Trust's Dividend Yield and Growth
As of today, CapitaLand Integrated Commercial Trust currently has a 12-month trailing dividend yield of 5.40% and a 12-month forward dividend yield of 5.45%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, CapitaLand Integrated Commercial Trust's annual dividend growth rate was -18.60%. Extended to a five-year horizon, this rate increased to -10.00% per year. And over the past decade, CapitaLand Integrated Commercial Trust's annual dividends per share growth rate stands at -1.50%.
Based on CapitaLand Integrated Commercial Trust's dividend yield and five-year growth rate, the 5-year yield on cost of CapitaLand Integrated Commercial Trust stock as of today is approximately 3.19%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, CapitaLand Integrated Commercial Trust's dividend payout ratio is 1.03, which may suggest that the company's dividend may not be sustainable.
CapitaLand Integrated Commercial Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CapitaLand Integrated Commercial Trust's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. CapitaLand Integrated Commercial Trust's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and CapitaLand Integrated Commercial Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CapitaLand Integrated Commercial Trust's revenue has increased by approximately 4.90% per year on average, a rate that outperforms approximately 67.55% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, CapitaLand Integrated Commercial Trust's earnings increased by approximately -17.30% per year on average, a rate that outperforms approximately 21.47% of global competitors.
Looking Ahead: CapitaLand Integrated Commercial Trust's Dividend Prospects
In conclusion, CapitaLand Integrated Commercial Trust's commitment to dividend payments, even in the face of fluctuating growth rates, speaks to its dedication to shareholder returns. However, the high payout ratio may raise concerns about the long-term sustainability of these dividends. With a solid profitability rank and promising growth metrics, CapitaLand Integrated Commercial Trust appears to be navigating a path that could potentially support its dividend strategy. Yet, investors should continue to monitor the balance between dividend payments, growth investments, and the overall financial health of the company. Will CapitaLand Integrated Commercial Trust manage to maintain its dividend attractiveness while securing its financial future? That remains a key question for value investors.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
