CapitaLand China Trust - DBS Research 2024-04-25: Uphill Battle Persists For The New Economy Segment

• CapitaLand China Trust (SGX:AU8U) reported a ~1.6% y-o-y decline in top-line revenue to RMB468.1m. The retail segment continues to perform better than the new economy segment, in line with our expectations, rising 5.7% y-o-y on a same-store basis (excluding divestment of the Shuangjing and Qibao malls).

CapitaLand China Trust's 1Q operational update

• - Read this at SGinvestors.io -
• The new economy segment continues to see deepening woes, delivering a 6.6% y-o-y decline in gross revenues. Both the business parks and logistics segments continue to see a downward momentum in occupancies, landing at 90.2% and 67.6%, respectively.
• Notably, one of CapitaLand China Trust’s four logistics assets saw the vacation of its tenant in the quarter and the asset will likely sit vacant for a period of at least 3 to 6 months while CapitaLand China Trust prospect new tenants to take over the space.

Capital management was generally stable

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• RMB-denominated loans rose from ~20% of overall debt profile in 4Q23 to 23% this quarter, with a long-term target to increase onshore exposure to 30%.
• There will be no refinancing requirement for the rest of the year.

Our views on CapitaLand China Trust

• Read more at SGinvestors.io.

Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2024-04-25 SGinvestors.io

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