I opened positions in $CapLand China T(AU8U.SI)$ at a screaming bargain price! I love shopping πποΈποΈποΈποΈπ¬ and who doesn't love a great shopping mall π¬? Plus there's business and logistics park properties. My awesome πΈπ¬Singapore bro @SPOT_ON talked me into going shopping with him - Again - on this stock. The last time I went shopping with him he made me over 14% on $OUEREIT(TS0U.SI)$ So I'm all in on this shopping trip. Cheers mate! Eh bro, letβs chiong this stock together lah, confirm can make one! ππππππππππππππ
Whose coming shopping with us and scooping up this bargain?
CapitaLand China Trust, or CLCT, is a China-focused REIT with a portfolio of nine shopping malls, five business park properties, and four logistics park properties.
The REITβs unit price has slid 26% year-to-date (YTD) to S$0.68, just a tad higher than its 52-week low of S$0.67.
CLCT reported that gross revenue for 2023 fell by 4.8% year on year to S$364.7 million while net property income (NPI) dipped by 2.9% year on year to S$246.7 million.
Distribution per unit (DPU) tumbled 10.1% year on year to S$0.0674.
The weaker performance was principally because of a weaker exchange rate used to translate revenue and NPI back to Singapore dollars.
In RMB terms, revenue and NPI rose 3.3% and 5.3%, respectively, to RMB 1.9 billion and RMB 1.3 billion.
The REIT sported an occupancy rate of 91.4% as of 31 December 2023.
Its stable of malls saw a strong upsurge in both shopper traffic and tenant sales with Chinaβs full reopening.
Shopper traffic for 2023 shot up nearly 46% year on year while tenant sales improved by 41.5% year on year.
CLCTβs gearing stood at 41.5% with an average cost of debt of 3.57%.
Happy trading ahead! Cheers, BC π
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Comments
Based on the information provided, let's analyze CapitaLand China Trust (CLCT).
CLCT is a China-focused Real Estate Investment Trust (REIT) with a portfolio of nine shopping malls, five business park properties, and four logistics park properties. The unit price of CLCT has experienced a decline of 26% year-to-date (YTD) and is currently trading at S$0.68, slightly above its 52-week low of S$0.67.
In terms of financial performance, CLCT reported a 4.8% year-on-year decrease in gross revenue for 2023, amounting to S$364.7 million. The net property income (NPI) also dipped by 2.9% year-on-year to S$246.7 million. Additionally, the distribution per unit (DPU) experienced a decline of 10.1% year-on-year to S$0.0674. These weaker results were mainly attributed to the weaker exchange rate used to translate revenue and NPI back to Singapore dollars.
However, in RMB terms, CLCT exhibited positive growth with a 3.3% increase in revenue to RMB 1.9 billion and a 5.3% increase in NPI to RMB 1.3 billion. The occupancy rate of CLCT's properties stood at 91.4% as of December 31, 2023.
Despite the challenging financial performance, there are some positive signs. The reopening of China's economy led to a significant increase in shopper traffic and tenant sales in CLCT's malls. Shopper traffic saw a surge of nearly 46% year-on-year in 2023, while tenant sales improved by 41.5% year-on-year.
It is important to note that investing in REITs carries various risks, such as interest rate fluctuations, economic downturns, and changes in the real estate market. Additionally, the performance of CLCT is dependent on the Chinese market, which may be influenced by factors such as government policies and regulatory changes.
As an AI financial analyst, I cannot provide personalized investment advice. However, when considering investments, it is essential to carefully evaluate the company's financial position, market conditions, and your own risk tolerance. It is also recommended to consult with a qualified financial advisor who can provide you with tailored advice based on your individual circumstances.
Risk Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Investing in stocks and other financial instruments involves risks, including the risk of loss. Past performance is not indicative of future results. Please conduct thorough research and consider your financial situation before making any investment decisions.