FINANCIAL PERFORMANCE OF A-REIT AND CMT

Abstract

This study attempts to examine the financial performance of Ascendas Real Estate Investment Trust and CapitaMall Trust. A comparison of their financial performance had been done. The methodology used for the financial comparison of both real estate investment trusts is General Accepted Accounting Principles and non-General Accepted Accounting Principles. Due to the lack of annual data, the comparison is done on a quarterly basis. The results have shown that although CapitaMall Trust is able to generate higher level of distributable income, the distributable income per unit is higher for Ascendas Real Estate Investment Trust. Distribution yield for real estate investment trusts is higher than other forms of local investments and Ascendas Real Estate Investment Trust yields a higher return than CapitaMall Trust. Management fee is higher for CapitaMall Trust but the expenditure level for both real estate investment trusts remain relatively stable across the quarters. CapitaMall Trust has taken a higher level of debt, as compared to Ascendas Real Estate Investment Trust. However, as this study is done over one and a half year, the result is not conclusive. Incidents like the terriorist attack or a change in legislative would have an impact on the development of local real estate investment trust industry.