CapitaLand China Trust's Rental Rates yet to Show Growth Despite Improving Metrics

Dow Jones
Aug 05

0838 GMT - CapitaLand China Trust's retail portfolio rental rates have yet to show growth despite the segment's operating metrics improving, leading DBS Group Research's Tabitha Foo to maintain a hold rating on the real-estate investment trust. The portfolio's 2Q rates of new rents were weighed by the lease renewals or replacement of two major anchor tenants, as the REIT appeared to prioritize longer-term mall positioning, the analyst says in a note. The anchor repositioning and active tenant changes should support an eventual turnaround in new rents as retailer confidence recovers, though this could take some time, she adds. Meanwhile, its business parks could remain a drag amid oversupply and competition for tenants. DBS maintains its hold rating and 75 Singapore cent target price. Units rise 3.05% to S$0.675.

 

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