This continues our series of IRR returns of REITs on my Dividend Stock Tracker since their listings, factoring all the rights issues, placements that they have done.
The past computation done can be viewed here:
- Keppel REIT – 8.33%
CapitaRetailChina was an interesting listing that enables investors to tap into the growing consumer landscape in China.
They went through the great financial crisis and turned out well. While some of the malls have much lower occupancy as their Singapore counterparts, some are due to Asset Enhancement Initiatives being currently carried out.
The internal rate of return this seven and a half years have been very good. While the trust started off with a very tame yield, giving folks the idea that Capitaland is just trying to liquidate their China assets, the growth in dividends per share have been very good.
There have not been much rights issue as well (one rights issue on Oct 2013), and they did not have to do a rights issue to bail out debts in the great financial crisis due to that the debt are not maturing in the next 1 to 2 years, since they were listed at the top of the market.
Based on the Dividend Stock Tracker, CapitaRetailChina REIT sits with a 6.5% dividend yield, and a 25% net debt to asset ratio, trading at 0.8 times NAV.
This certainly looks like a rather well managed REIT while you have to assess the future consumption prospect of China.