CapitaLand Retail China properties still in gestation phase

SINGAPORE (Oct 27): DBS is maintaining its “hold” call on CapitaLand Retail China Trust (CRCT) with a target price of $1.60, citing factors out of its control such as currency depreciation and higher property taxes.

In a Wednesday report, lead analyst Mervin Song remains positive on CRCT’s medium-term outlook, despite the recent depreciation of the RMB and higher property taxes in Beijing capping the REIT’s near-term performance.

“However, should there be any share price weakness, we recommend investors to increase exposure to CRCT, especially given rising acquisition opportunities in China,” says Song.

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