CAPITALAND C REIT IPO IN SHANGHAI COULD BOOST CLCT PRICE TO ITS NAV $1.10
$CapLand China T(AU8U.SI)$
Units in CapitaLand China Trust closed at 73 cents on July 10, representing a price to NAV (P/NAV) of 0.67x. In FY2024, CLCT distribution per unit (DPU) translates into a yield of 7.7% based on its June 10 price. Its P/NAV compares with a P/NAV of 1.5x for consumption-related C-REITs, and it is trading at a relatively higher yield versus the consumption C-REITs’ sub-4% DPU yields as at end-June
We are trading at a discount. Hopefully, after we demonstrate our value arbitrage, the discount will be smaller,” Chan says. If CLCT can crystallise the value of Yuhuating, CLCT’s unit price could recover.
CLCT announced it planned to divest CapitaMall Yuhuating into a C-REIT, CapitaLand Commercial C-REIT or CLCR. Together with CapitaLand Investment and CapitaLand Development, CLCT would have 20% stake in CLCR. On June 12, CLCT announced that the floor price of CapitaMall Yuhuating will be RMB748 million, and it would take a 5% stake in CLCR.
Additionally, if CLCT manages to receive a larger premium for Yuhuating - at a price higher than RMB748 million, CLCT would have additional financial flexibility.
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