CMA/ CRCT

CMA/ CRCT: REITs benefiting from rising rental income from portfolio of shopping malls in China. World famous brands are opening stores in its malls, and better-known brands are looking for a foothold within China. Conversion rate of footfalls into more sales are not tapped yet, and indicates a potential. Yield compression has occurred due to the higher interest in the shopping mall business in tier-2 cities from both traditional developers or funds. CRCT's yield currently at 5.3%, compared with 6.2% a year ago. CMA currently trading at 1.3x P/B; CRCT trading at 1.4x P/B