On 27 October 2023, CapitaLand China Trust (“CLCT”) have announced their third quarter business update of 2023. Their gearing ratio have seen a notable increase and is close to the MAS limit of 50%. This is something investors should take note of given the RMB denomination. With the end of the financial year around the corner, there may also be revisions to the valuations of the properties which may further affect the gearing. Investors will need to assess their risk appetite accordingly.

Website: General Announcement::3Q 2023 Business Updates

Photo source: https://www.clct.com.sg/

Background

CLCT is Singapore’s largest China-focused real estate investment trust (“REIT”). CLCT’s portfolio constitutes of shopping malls, business parks and logistics parks. CLCT was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 8 December 2006. The REIT’s objective is to invest on a long-term basis, in a diversified portfolio of income-producing real estate and real estate-related