CapitaLand Retail China Trust (SGX: AU8U), or CRCT, is a Singapore-based real estate investment trust (REIT) investing in retail real estate in China. The REIT’s shopping malls are located in China, Hong Kong, and Macau.
There are two things to know about the REIT right now: its latest financial performance and valuation.
Here is a table showing important items from Capitaland Retail China Trust’s financial performance for the first quarter of the financial year ending 31 December 2019 (FY19).
Source: Capitaland Retail China Trust Result Presentation
The above is a table from Capitaland Retail China Trust latest earnings update. The year-on-year improvement in gross revenue and NPI (net property income) was due to stronger rental growth from the core malls, offset by lower revenue in CapitaMall Wuhu, which is currently in the process of being divested to an external party. As at 31 March 2019, the retail REIT clocked in a gearing ratio of 35.5% whilst its occupancy rate stood at 97.4%.
There are two useful valuation metrics for assessing REITs. They are the price-to-book (PB) ratio and the distribution yield.
The table below shows CapitaLand Retail China Trust’s PB ratio and distribution yield. It also shows the respective averages for the two valuation metrics for the 41 REITs that are in Singapore’s stock market.
Source: Yahoo Finance, OCBC Weekly S-REITs Tracker
We can see that CapitaLand Retail China Trust’s valuation is comparable to the market average, both in terms of PB and distribution yield.
Stop worrying about the uncertain REITs market with our new Complete Guide To Buying The Best Singapore REITs. We give you 3 quick ways to easily value your REITs so you save tons of research time. Value your REITs today so you know exactly when to buy, sell or hold. Simply enter your email here and we will rush the 42-page PDF immediately to your inbox...for FREE!
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has recommended shares of CapitaLand Retail China Trust.