CapitaLand China Trust reported 9M22 gross revenue up 7.0% y-o-y to RMB1,429m. 9M22 net property income rose 7.5% y-o-y to RMB970.8m. This is due to incremental contributions from the business park and logistics park segments acquired earlier in 1H21.
- Read this at SGinvestors.io -
Completion of CapitaMall Wangjing’s AEI a boost to reversionary rents this quarter
3Q22 shopper traffic rose 38% q-o-q while tenant sales rose a corresponding 34% q-o-q, following the exit of lockdowns in 1H22. On a year-to-date basis, shopper traffic declined 17% y-o-y while tenant sales declined 8.2% y-o-y with the peak impact of lockdowns felt in 1H22.
- Read this at SGinvestors.io -
CapitaLand China Trust recovered ~7,100 sqm of space within CapitaMall Wangjing from an anchor department store tenant, or ~16% of the mall’s total NLA. The space was released to 70 new mini-tenants, of which three-thirds are new-to-market concepts, and saw a sharp increase in shopper interest with a hike in traffic (+26% y-o-y) and tenant sales (+55% y-o-y) in its first week of opening.
The AEI attained more than a 20% return on investment, with ~140% rental reversion post AEI, and a > ~20% increase in passing rent at the mall, based on our calculation.
CapitaLand China Trust will be expecting a similarly higher return on investment at Yuhuating, which is undergoing AEI of a similar nature as Wangjing mall, with completion by 1Q23.
Incremental income from AEI completion at both Wangjing Mall and Yuhuating will pose as upsides to our retail income in the coming quarters – which we have priced in.
New economy segment: Modest reversionary rents maintained
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
