CapitaLand China Trust
Citi's 2024 Asia Pacific
Property Conference
24 June 2024
CapitaMall Xizhimen, Beijing, China
Disclaimer
This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other developments or companies, shifts in customer demands, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training, property operating expenses), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.
You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management regarding future events. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaLand China Trust Management Limited ("Manager") nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use of, reliance on or distribution of this presentation or its contents or otherwise arising in connection with this presentation.
The past performance of CapitaLand China Trust ("CLCT") is not indicative of future performance. The listing of the units in the CLCT ("Units") on the Singapore Exchange Securities Trading Limited (SGX-ST) does not guarantee a liquid market for the Units. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units through trading on the SGX-ST.
This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units.
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Table of Contents
01 | 05 |
Overview of CLCT | Looking Forward |
02
1Q 2024 Business
Updates
03
Capital Management
04
Portfolio Overview
Kunshan Bacheng Logistics Park, Kunshan, China
Overview of CLCT
Ascendas Xinsu Portfolio, Suzhou, China
Diversified and Resilient Portfolio
First and Largest China-FocusedS-REIT
Total Assets1 | No. of Properties |
S$5.0 billion | 18 |
Located in | Retail Contribution to AUM2 |
12 cities | 75.9% |
Market Cap3 | Distribution Yield4 |
S$1.1 billion | 10.1% |
Notes:
* Number of properties indicated for cities with more than one property in the same asset class.
- As at 31 December 2023.
- Based on effective stake as at 31 December 2023, post completion of CapitaMall Shuangjing's divestment
- As at 21 June 2024.
- Based on FY 2023 DPU of 6.74 S cents and unit price of S$0.670 as at 21 June 2024.
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Building Resilience While Embracing New Opportunities
Aligned with China's Long-Term Focus on Domestic Consumption and Innovation-Driven Growth:
- Expanded investment mandate in 2020
- Disciplined portfolio reconstitution and rejuvenation
- Total Acquisition and Divestment Value from 2017 - 2023: S$3.1 billion1
2019 | Retail Pureplay |
2020 | +Business Parks |
2021 | +Logistics Parks |
2022 - | Portfolio Optimisation |
2023 | Conducted strategically timed AEIs, and ceased operations at CapitaMall Qibao which resulted in |
operational cost savings | |
2024 | Divested CapitaMall Shuangjing |
Unlocked value of mature mall, improving financial flexibility to pursue more portfolio reconstitution |
initiatives
Note:
1. Based on effective stake as at 31 December, which includes any acquisitions and divestments that were announced during the respective year.
Divested 7 non-core and matured assets
since listing, including
6 out of 7 IPO assets
and pursued new growth
with capital recycled
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Value Optimisation through Market Cycles
Delivering Steady and Sustainable Unitholder Returns
Net Property Income | Distributable Income | DPU | ||||||||||||||||||||||||||||
(S$ million) | (S$ million) | (Cents) | ||||||||||||||||||||||||||||
300 | 160 | 12 | ||||||||||||||||||||||||||||
250.4 | 254.2 | 246.7 | 140 | 135.5 | ||||||||||||||||||||||||||
250 | 10 | |||||||||||||||||||||||||||||
125.6 | ||||||||||||||||||||||||||||||
120 | 106.6 | 113.9 | ||||||||||||||||||||||||||||
200 | 99.7 | 8 | ||||||||||||||||||||||||||||
100 | ||||||||||||||||||||||||||||||
165.4 | 89.2 | 86.7 | 91.1 | |||||||||||||||||||||||||||
149.2 | 147.4 | 80.9 | ||||||||||||||||||||||||||||
150 | 141.1 | 139.7 | 135.2 | 80 | 79.7 | 6 | ||||||||||||||||||||||||
132.4 | 66.8 | 70.1 | ||||||||||||||||||||||||||||
99.7 | 103.0 | 60 | 52.2 | 57.2 | ||||||||||||||||||||||||||
100 | 85.8 | 4 | ||||||||||||||||||||||||||||
77.2 | ||||||||||||||||||||||||||||||
40 | ||||||||||||||||||||||||||||||
50 | 20 | 2 | ||||||||||||||||||||||||||||
0 | 0 | 0 | ||||||||||||||||||||||||||||
FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | |||||||||||||||||
FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | |||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||||||||||||
2024
Focus:
Note:
1. Time period for CAGR Calculation is from 2010 to 2023.
Driving asset | Reconstitution | Enhancing financial |
performance | of portfolio | management |
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Attractive Yield Spread and Healthy Trading Liquidity
Comparative Yields (as at 31 May 2024)
Average
Trading Volume
CLCT1
FSTREI Yield 2
10.1%
5.5% | 4.6% |
1 year6
(Units per Day)
~3.2 million
FSTRE Yield 3
STI Yield 4
China 10-year Govt Bond Yield 5
Singapore 10-year Govt Bond Yield 5
5.3%
5.0%
2.3%
3.4%
4.8%
5.1%
7.8%
6.7%
10 year7
IPO8
~2.4 million
~2.0 million
Sources: Bloomberg, CLCTML, Monetary Authority of Singapore.
- Based on FY 2023 DPU of 6.74 S cents and unit price of S$0.67 as at 31 May 2024.
- Trailing 12-months dividend yield of Straits Times REIT Index as at 31 May 2024 closing price.
- Trailing 12-months dividend yield of Straits Times Real Estate Index as at 31 May 2024 closing price.
- Trailing 12-months dividend yield of Straits Times Index stocks as at 31 May 2024 closing price.
- Singapore Government 10-year and China Government 10-year bond yields as at 31 May 2024.
Source: Bloomberg
- 1 year refers to 1 June 2023 to 31 May 2024.
- 10 year refers to 3 June 2013 to 31 May 2024.
- Since IPO to 31 May 2024.
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1Q 2024 Business Updates
Singapore-Hangzhou Science & Technology Park Phase I, Hangzhou, China
1Q 2024 Key Highlights
RMB (mil) | 1.6% |
9 Retail Malls1 Continue to Lead Recovery
475.5 468.1
143.1133.6
332.4334.5
1Q 2023 | 1Q 2024 |
Retail | New Economy |
Gross Revenue
-
1Q 2024 gross revenue contribution from 9 malls > 1Q
2023's contribution from 11 malls - Excluding CapitaMall Shuangjing and CapitaMall Qibao's contribution in 1Q 2023, Retail Gross Revenue would have increased 5.7% YoY
17.4% | 12.6%2 | 3.47% | 40.8% |
Shopper Traffic | Tenant Sales | Stable Cost | Gearing |
(1Q YoY) | (1Q YoY) | of Debt |
RMB (mil) | 7.7% |
Asset Class Diversification and Occupancy
Retail | Business Park | Logistics Park |
75.9% by AUM3 | 17.0% by AUM3 | 7.1% by AUM3 |
Occupancy: 97.7% | Occupancy: 90.2% | Occupancy: 67.6%4 |
339.1 313.1
119.393.0
219.8220.1
1Q 2023 | 1Q 2024 |
Retail | New Economy |
Net Property Income
- NPI for top 5 malls5 increased 9.5% YoY
- Lower contributions from logistics parks and the absence of one-off property tax refund from business parks
Notes:
- Compared to 11 retail malls in 1Q 2023.
- For comparison purposes, normalised operations have been assumed for Carrefour in CapitaMall Grand Canyon for the comparison period.
- Based on effective stake as at 31 December 2023, post completion of CapitaMall Shuangjing's divestment.
- Excluding Shanghai Fengxian Logistics Park, Logistics Park portfolio occupancy would be 88.9%.
- Referring to CapitaMall Xizhimen, Rock Square, CapitaMall Wangjing, CapitaMall Xuefu and CapitaMall Grand Canyon.
NPI in SGD terms declined 11.8% YoY partially due to 4.7% YoY depreciation of RMB to SGD
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CapitaLand China Trust published this content on 24 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2024 07:37:11 UTC.