Interestingly, the consumption C-REITs’ DPU yields averaged 5.5% during their respective IPOs based on data compiled from their financial statements and presentations, and have compressed post-IPO.
Units in CapitaLand China Trust closed at 73 cents on July 10, representing a price to NAV (P/NAV) of 0.67x. In FY2024, CLCT distribution per unit (DPU) translates into a yield of 7.7% based on its July 10 price.
Its P/NAV compares with a P/NAV of 1.5x for consumption-related C-REITs, and it is trading at a relatively higher yield versus the consumption C-REITs’ sub-4% DPU yields as at end-June.
