Latest news with #CLCT
Business Times
2 days ago
- Business
- Business Times
CapitaLand China Trust to divest retail property for 748 million yuan
[SINGAPORE] CapitaLand China Trust (CLCT) , a CapitaLand Investment subsidiary, is set to raise up to 748 million yuan (S$134.9 million) through the divestment of CapitaMall Yuhuating, a mature retail asset in Changsha. This is part of its participation in the proposed listing of CapitaLand Commercial C-Reit (CLCR) on the Shanghai Stock Exchange. CLCT will dispose of its entire interest in CapitaMalls Hunan Commercial Property, the entity that owns CapitaMall Yuhuating, to Changsha Kaiting Consulting & Management. The trust will sell the asset at a floor price of 748 million yuan, based on independent valuations. Gross proceeds from the transaction are expected to reach 738.5 million yuan, with net proceeds of about 595.3 million yuan after deducting transaction costs and the subscription amount. From the gross proceeds, CLCT intends to allocate around S$20.7 million to subscribe for 5 per cent of the commercial real estate investment trust's (C-Reit) initial public offering (IPO) units. The subscription will be subject to a five-year lock-up period. The manager noted on Thursday (Jun 12) that if CapitaMall Yuhuating is divested at the floor price, the exit net property income yield would be 6.8 per cent. Assuming the net proceeds are used to reduce debt and buy back units, the distribution per unit accretion is projected at 0.4 per cent. CLCT's manager views the transaction as a key step in realising value from a mature asset, while continuing to maintain exposure to China's retail sector through its stake in CLCR. The move is also expected to strengthen its balance sheet, potentially reducing aggregate leverage from 42.6 per cent to 41.4 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In addition to improving financial flexibility – through the use of the proceeds for debt repayment, unit buybacks or working capital – CLCT's participation in CLCR gives it a new platform for future asset recycling, as well as access to China's onshore capital markets and a broader investor base. The manager also noted that the C-Reit market in China has been gaining momentum. 'As at Jun 10, there are currently 66 listed C-Reits with total market capitalisation of approximately 201.7 billion yuan.' This is due to the Chinese government ramping up efforts to boost consumer spending. Consumption-related C-Reits have achieved strong post-IPO average unit price increases of more than 50 per cent, demonstrating the potential for capital appreciation, added the manager. As at 9.53 am on Thursday, units of CLCT were flat at S$0.695.
Business Times
2 days ago
- Business
- Business Times
CapitaLand China Trust to raise 748 million yuan via divestment for C-Reit listing
[SINGAPORE] CapitaLand China Trust (CLCT) , a CapitaLand Investment subsidiary, is set to raise up to 748 million yuan (S$134.9 million) through the divestment of CapitaMall Yuhuating, a mature retail asset in Changsha. This is part of its participation in the proposed listing of CapitaLand Commercial C-Reit (CLCR) on the Shanghai Stock Exchange. As part of this move, CLCT will divest its entire interest in CapitaMalls Hunan Commercial Property, the entity that owns CapitaMall Yuhuating, to Changsha Kaiting Consulting & Management. The trust will sell the asset at a minimum floor price of 748 million yuan, which has been valued by independent valuers. Gross proceeds from the transaction are expected to reach 738.5 million yuan, with net proceeds of about 595.3 million yuan after deducting transaction costs and the subscription amount. From the gross proceeds, CLCT intends to allocate around S$20.7 million to subscribe for 5 per cent of CLCR's initial public offering (IPO) units. The subscription will be subject to a five-year lock-up period. The manager noted on Thursday (Jun 12) that if CapitaMall Yuhuating is divested at the minimum floor price, the exit net property income yield would be 6.8 per cent. Assuming the net proceeds are used to reduce debt and buy back units, the distribution per unit accretion is projected at 0.4 per cent. CLCT views the transaction as a key step in realising value from a mature asset while continuing to maintain exposure to China's retail sector through its stake in CLCR. The move is also expected to strengthen its balance sheet, potentially reducing aggregate leverage from 42.6 per cent to 41.4 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In addition to improving financial flexibility – through the use of proceeds for debt repayment, unit buybacks or working capital – CLCT's participation in CLCR gives it a new platform for future asset-recycling and access to China's onshore capital markets and broader investor base. The manager of the Reit noted that the C-Reit market in China has been gaining momentum. 'As at Jun 10, there are currently 66 listed C-Reits with total market capitalisation of approximately 201.7 billion yuan,' it added. This is due to the Chinese government ramping up efforts to boost consumer spending. Consumption-related C-Reits have achieved strong post-IPO average share price increases of more than 50 per cent, demonstrating the potential for capital appreciation, the manager noted. As at 9.53 am on Thursday, shares of CLCT were flat at S$0.695.
Business Times
27-04-2025
- Business
- Business Times
S-Reits rebound from early April sell-off
[SINGAPORE] Real estate investment trusts in Singapore (S-Reits) have rebounded strongly over the past two weeks, in line with the broader recovery in the Singapore market following the sell-off in early April. As at Thursday's (Apr 24) close, the iEdge S-Reit index has climbed 5.9 per cent since Apr 11, with all 30 constituents ending flat or higher. S-Reits with international exposure, as well as those holding hospitality assets, ranked among the top performers. Over the past two weeks, the top 10 performers in the iEdge S-Reit index mostly saw net institutional inflows, with these counters receiving a combined S$23.3 million in net institutional inflows from Apr 14 to 24. However, institutional and retail investors were net sellers of the broader S-Reits sector over the same period. From Apr 14 to 24, institutional investors net sold S$36.6 million in S-Reits, bringing their total net outflows for the sector to S$465.1 million for the year-to-date. Meanwhile, retail investors net sold S$64.4 million over the same period, reversing net buying activity earlier this month. For the year-to-date, retail investors remain net buyers of the S-Reits sector, with total net inflows of S$261.9 million. CapitaLand China Trust (CLCT) ranked among the top three iEdge S-Reit index constituents over the past two weeks, with its units rising over 11 per cent from Apr 14 to 24. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up CLCT's first-quarter business update on Apr 24 showed that it maintained high occupancy for its retail portfolio of 97.7 per cent, with positive rental reversions of 0.5 per cent. The Reit's business parks also had stable occupancy of 83.7 per cent, while logistics parks saw 95.7 per cent occupancy. The CEO of CLCT's manager noted in a recent SGX kopi-C interview that CLCT's malls mainly serve China's middle-income consumers, and the tenants have little dependence on US-imported products. He added that although US tariffs have introduced volatility to capital markets, the direct impact on CLCT's operations remains minimal. Elsewhere, Mapletree Logistics Trust's (MLT) full-year results, released on Apr 23, showed stable operating performance with 96.2 per cent occupancy as at end-March, and positive rental reversion of 5.1 per cent for Q4. The Reit recorded positive rental reversions in all markets except China. MLT's manager noted that the diversified portfolio mitigated headwinds from higher borrowing costs and China weakness. MLT's manager added that the changing trade policy landscape is unprecedented and evolving, and tenants are expected to take a cautious approach to leasing and expansion in the short term. However, the majority of MLT's tenants are serving local domestic consumption, accounting for around 85 per cent of portfolio revenue as at its Q4. MLT's units rebounded 7.4 per cent from Apr 14 to 24, ranking it among the top 10 index performers. Similarly, Suntec Reit units also gained 7.4 per cent over the same period. The Reit, which also announced its Q1 business update on Apr 24, reported improved distributable income (DI) for the period ended March, rising 4.3 per cent on year to S$45.9 million. Distribution per unit was also 3.4 per cent higher year on year for Q1. The manager noted that DI was improved due to lower financing costs as well as better operating performance, with all properties – except for 55 Currie Street, Adelaide – registering stronger operating performance. Some 13 S-Reits have already released their financial results or business updates for the financial period ended March. Another 12 S-Reits are expected to release their latest filings this week, including STI constituents CapitaLand Ascendas Reit , Mapletree Industrial Trus t, and Frasers Centrepoint Trus t. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
24-04-2025
- Business
- Business Times
CapitaLand China Trust Q1 NPI slips 6.6% to 292.5 million yuan amid lower revenue
[SINGAPORE] The manager of CapitaLand China Trust (CLCT) posted a net property income (NPI) of 292.5 million yuan (S$52.8 million) for the first quarter of financial year 2025, down by 6.6 per cent from 313.1 million yuan in the previous corresponding period. Gross revenue fell 6.1 per cent to 439.7 million yuan for the quarter, from 468.1 million yuan in the year-ago period, amid declines in retail and business park revenue and higher logistics parks revenue. Lower NPI was driven by the drop in gross revenue but partially offset by savings in operating expenses of 5 per cent year on year for the overall portfolio, the manager said in a Thursday (Apr 24) business update. Revenue for retail fell 2.7 per cent due to lower rents at CapitaMall Xinnan. The decline would have been slightly greater, at 3.7 per cent, if supermarket upgrading works in CapitaMall Wangjing, CapitaMall Xizhimen and CapitaMall Xuefu were accounted for. While shopper traffic was up 2.4 per cent year on year, tenant sales at CLCT malls were down 2.4 per cent. As at Dec 31, 2024, the retail portfolio was CLCT's largest asset class by gross rental income (GRI), accounting for 71.4 per cent of GRI with a valuation of 17.1 billion yuan. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It is followed by business parks that make up 25.1 per cent of GRI, with a 5.4 billion yuan valuation, and logistics parks at 3.5 per cent of GRI, with a 1.5 billion yuan valuation. Business park revenue slipped 9.6 per cent on lower occupancy for some properties. The overall portfolio's occupancy fell to 83.7 per cent from 90.2 per cent in the year-ago period. Three out of five business parks in the portfolio recorded lower occupancy on the year. They were the Ascendas Xinsu Portfolio, the Singapore-Hangzhou Science Technology Park Phase II and Ascendas Innovation Towers. Logistics parks revenue climbed 3.3 per cent, which the manager attributed to higher occupancy at Kunshan Bacheng Logistics Park as the property achieved full occupancy for the quarter, up from 89.7 per cent previously. The overall logistics portfolio posted an occupancy of 95.7 per cent for Q1, with three of its four logistics parks attaining full occupancy. Gearing stood at 42.6 per cent as at Mar 31, 2025, down from 41.9 per cent as at Dec 31, 2024. Weighted average lease expiry was 1.7 years by gross rental income and 2.4 years by net lettable area. Outlook: recovery of business confidence will take time Noting that Chinese regulators have announced fiscal and monetary stimuli to boost domestic consumption and growth to cushion tariff impacts, the manager said: 'While these efforts are under way, the recovery of business confidence will take time, with a lag expected before the effects are fully felt.' CLCT's retail portfolio should have 'enhanced resilience' given its asset enhancement initiatives completed in 2023, the manager said. Market pressures are expected to lead to weakness in average rental prices and occupancies at CLCT business parks, it said. The logistics parks sector remains highly exposed to trade-related risks although there are ongoing efforts to explore portfolio reconstitution opportunities. Units of CLCT closed 3.8 per cent or S$0.025 higher at S$0.69 on Wednesday.
Business Times
24-04-2025
- Business
- Business Times
CapitaLand China Trust Q1 NPI falls 6.6% to 292.5 million yuan
[SINGAPORE] The manager of CapitaLand China Trust (CLCT) on Thursday (Apr 24) posted a net property income (NPI) of 292.5 million yuan (S$52.8 million) for the first quarter of financial year 2025, down by 6.6 per cent from 313.1 million yuan in the previous corresponding period. Revenue fell 6.1 per cent to S$439.7 million yuan for the quarter, from 468.1 million yuan in the year-ago period. The decrease came as retail and business park revenue both declined, due to lower rents at CapitaMall Xinnan, and lower occupancy at the Singapore-Hangzhou Science Technology Park Phase II and Ascendas Innovation Towers. The decline in NPI was due to the drop in revenue, the manager said. However, it was partially offset by savings in operating expenses of 5 per cent year on year for the overall portfolio. Units of CLCT closed 3.8 per cent or S$0.025 higher at S$0.69 on Wednesday.
