CapitaLand China Trust - DBS Research 2023-10-30: New Economy Assets Showing Slower Progress

CapitaLand China Trust - New Economy Assets Showing Slower Progress

CapitaLand China Trust (SGX:AU8U) | SGinvestors.ioCapitaLand China Trust (SGX:AU8U)
  • CapitaLand China Trust (SGX:AU8U)'s 3Q23 gross revenue reported saw a 1.9% y-o-y decline to RMB478m and higher net property income of 1.2% y-o-y to RMB316m. In S$ terms, 3Q23 net property income declined by 8.4% y-o-y, with 9M23 net property income stacking up to ~S$188m, behind our full year estimates.

Performance continues to be led by retail segment, as expected.

  • - Read this at -

Flat reversions for both retail and new economy segments.

  • Underlying retail drivers continues to show momentum from 1H23 numbers, which has seen a V-shaped recovery in both traffic footfall and tenant sales.
  • - Read this at -
  • We estimate that retail reversions signed for the quarter were flat and boosted by AEI completions for the period, especially Rock Square mall and Grand Canyon mall. Occupancy rose 1ppt q-o-q to 97.8%.

Securing tenants early within business parks segment in a supply-heavy market.

  • New leases in the quarter saw demand from the electronics and professional services segment.
  • We estimate that reversions signed for the period were flat at 0.9%, following decent reversionary numbers in 1H23 at 3.9%. CapitaLand China Trust has secured about ~70% of lease expiries in 4Q23 by NLA.
  • Business park occupancies on most assets were unchanged, while AIT (Ascendas Innovation Towers) and SG-HZ Science Park 1 saw a steepening of vacancies by 1.1- 4.3% q-o-q.
  • Operational numbers continue to reflect sluggish sentiment within the new economy asset space, which is similar to other logistics S-REITs with China exposure. Hence portfolio vacancies within the new economy and logistics segments may not improve at this juncture, in our view.
  • New economy segment which has been a pillar of support through the pandemic years, may now be a portfolio drag with NPI for the period flat y-o-y from a low base in 2022.

Capital structure has been supportive.

  •

Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Geraldine WONG DBS Group Research | Derek TAN DBS Research | 2023-10-30

Read also DBS's most recent report:
2024-04-25 CapitaLand China Trust - Uphill Battle Persists For The New Economy Segment.

Previous report by DBS:
2024-01-31 CapitaLand China Trust - Logistics Headwinds Priced In.

Price targets by other brokers at CapitaLand China Trust Target Prices.

Listing of research reports at CapitaLand China Trust Analyst Reports.

Relevant links:
CapitaLand China Trust Share Price History,
CapitaLand China Trust Announcements,
CapitaLand China Trust Dividends & Corporate Actions,
CapitaLand China Trust News Articles


You May Also Like

SGX Stock / REIT Search


Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁