CapitaLand China Trust - OCBC Investment 2023-10-28: Playing The Long Game

CapitaLand China Trust - Playing The Long Game

Published:
CapitaLand China Trust (SGX:AU8U) | SGinvestors.ioCapitaLand China Trust (SGX:AU8U)
  • CapitaLand China Trust (SGX:AU8U)’s 3Q23 gross revenue dipped 1.9% y-o-y from CNY488.3m to CNY478.8m due to softness in the new economy segment, the closure of CapitaMall Qibao, and rent provisions made at CapitaMall Shuangjing in view of dated arrears from the anchor tenant.

3Q23 results slightly missed our expectations

  • - Read this at SGinvestors.io -
  • On an S$ basis, however, CapitaLand China Trust's 3Q23 NPI fell 8.4% y-o-y to S$58.9m due to the steep depreciation of CNY against the S$.

Divergence between retail and new economy assets

Retail portfolio the shining star

  • - Read this at SGinvestors.io -
  • 9M23 retail rental reversions came in positive at 2.8%, and with occupancy cost at healthy high-teens to low-20% range, CapitaLand China Trust has the potential to drive further organic rental growth, in our view.
  • Management also expects further upside, with CapitaMall Grand Canyon’s B1 asset enhancement initiative (AEI) slated for completion in 4Q23.
  • New economy assets remains a drag

    • Read more at SGinvestors.io.




    Above is the excerpt from report by OCBC Investment Research.
    Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.




    Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2023-10-28



    Read also OCBC's most recent report:
    2024-04-24 CapitaLand China Trust - A Tale Of Two Cities.

    Previous report by OCBC:
    2024-01-31 CapitaLand China Trust - Riding The Downcycle.

    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





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