CapitaLand China Trust - DBS Research 2024-07-31: Retail Segment Holding The Fort

• CapitaLand China Trust (SGX:AU8U) reported a 4.9% y-o-y decrease in 1H24 NPI to RMB631mil, on lower contributions from its logistics and business park portfolio, mitigated by strong retail performance. The retail segment remains the most resilient with flat contributions y-o-y albeit the divestment of Shuangjing mall and termination of Qibao mall lease.
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1H24 DPU in line with estimates

• Reversions were positive at 1.2% for leases signed in the period, with high occupancy rate maintained at 97.8%.
• CapitaLand China Trust's DPU for 1H24 of 3.01 cents was flat on a h-o-h basis but down by 19% y-o-y, in line with our full year estimates of 6.0 cents.

Upcoming lease renewals to monitor in new economy segment.

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• Logistics segment delivered a mixed set of results. Leases signed in this period were more steeply negative at -27%, as per guidance from previous quarters. Its logistics portfolio occupancy was at 70.4% post one of its tenant vacating at Shanghai Fengxian from business closure.
• Apart from CapitaLand China Trust’s Shanghai Fengxian logistics asset, logistics occupancy for the other three assets would have ended at ~90% for the quarter.

Gearing and cost of debt stable, held up by RMB denominated loans.

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Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2024-07-31 SGinvestors.io

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