CapitaRetail China Trust

CapitaRetail China Trust: the street is mostly neutral or underweight this counter, mainly on valuation grounds. While recent results were ok, growth prospects appear lackluster as trust sponsor is unlikely to inject any assets this year, and third party acquisitions still remain challenging. Near term, organic growth is expected to be tepid, driven by only two key assets, Wangjing Mall and Xizhimen Mall on the back of their rental reversions.