Should You Invest In CapitaLand India Trust [Fundamental Analysis]

In this article, we'll conduct a fundamental analysis and review of CapitaLand India Trust and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having high capital preservation ability.

Information Is Accurate Up To June 24

Business Description

CapitaLand India Trust (CLINT) is an industrial REIT focusing on mainly Hi-Tech properties in India and was listed in 2007.

What I Like About CLINT:

• ·Manager has a good track record in uplifting the individual property valuation (Figure 11)
  

• The overall performance of CLINT has been very resilient with a strong and well-diversified tenant base. (Figure 13)
  

• Properties have a huge long-term growth prospect as India’s economy is expected to have tremendous growth potential given their demographic tailwinds.
  

• The manager has a clear growth strategy that is also supported by a strong pipeline from their sponsor.

What I Do Not Like About CLINT:

• While having a certain income strategy in place, the underlying exposure to Indian Rupee had resulted in a major negative foreign exchange rate drag on the performance and distribution of CapitaLand India Trust despite the underlying properties performing decently well when measured in Indian Rupee.

Updates From Recent Performance (1Q 24)

General Comments:

• Net property income (by SGD terms) grew by 18% yearly on the back of higher rental income and income contributions from acquisitions and developments.
  

• Total floor area grew by 24% and Asset Under Management grew by 27% year over year.

Positive Headwinds:

• Worsening geopolitical headwinds and worsening global ties between the West and China have provided more opportunities for countries like India as the developed economies seek to diversify and reduce their operations away from China.

Negative Headwinds:

• -

Download Full Report On Telegram

and continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for CapitaLand India Trust:

*Join the channel → click on the channel name → under files → download the report you want!

"Retire With REITS" eBook/Webinar

If you are new to REIT investing or would like to sharpen your investment knowledge, you can gain access to my webinar and download my e-book: "Retire With REITs" which will give you insights as to how I analyse and select the right REITs to invest in for passive income generation!

- Work In Progress -

Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).

Connect with me on social media platforms to receive updates on future content! You can also slide into my DMs if you have any questions :)

---

Disclaimer:

This article is meant to be the opinion of the author

This article is for information purposes only

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore