Why CapitaLand's managed REITs are considered bellwethers

They have the financial flexibility post-sale of non-core assets.

CapitaLand's real estate investment trusts (REITs) are considered leaders in the field given their strong financial flexibility, analysts from DBS Group Research said.

According to analyst Derek Tan, CapitaLand Commercial Trust and CapitaLand Retail China Trust are industry bellwethers whose returns should remain stable despite operational challenges.

"CCT and CRCT are infused with improved financial flexibility post sale of non-core assets at high prices. Proceeds when re-deployed will present as upside to earnings," he said.

Meanwhile, Ascott Residence Trust is set to deliver accelerating returns on the back of debt-funded planned acquisitions in 2H17 and potentially more in 2018.

The group's retail REITs, CapitaLand Mall Trust and CapitaLand Malaysia Mall Trust is expected to ride through challenges in the retail sector in Singapore and Malaysia as active management of their malls underpins their dominant positions in their submarkets.
 

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