“Each REIT in CLI has a clear position and mandate that investors can choose from, to obtain the risk-adjusted returns that they are seeking,” CLCT said in a filing to SGX with answers to shareholders’ questions before its annual general meeting (AGM).
“CLCT is positioned as the dedicated Singapore-listed REIT for CapitaLand’s non-lodging China business with acquisition pipeline access to its China’s assets. As a country-focused play REIT with an expanded mandate, we have been able to capture the emerging growth pillars in China,” CLCT said.
The trust said it is positioning as a proxy for China’s future economic growth across multiple sectors, with plans to build exposure in the new economy sectors, including business parks, logistics parks, data centers, industrial assets and commercial and integrated developments.
When asked about the outlook, CLCT said it expected short-term volatility as China deals with the latest wave of Covid-19 infections.
“For the retail segment, retailers may realign their business strategies and store expansion plans for cities affected by Covid-19 but this will be offset by our presence in other cities that are not facing similar constraints,” the trust said.
The REIT noted leasing demand has been impacted in the retail sector, particularly for cities with more stringent movement controls.
“For the business park sector, it is poised to benefit from the structural upgrading of economy towards innovation-growth while the logistics parks will be supported by the strong boost in logistics demand as a result of the pandemic,” CLCT said.
The business parks and logistics parks are seeing rental reversions at positive mid-single-digit levels, the REIT said.