Despite that, the REIT has seen a sell-off in 2022 amid the rising interest rate environment.
However, the market weakness should provide an opportunity for investors to accumulate shares in CapitaLand Ascendas REIT in order to benefit from its upside potential over the long term.
It is Singapore’s first, and largest, business space and industrial REIT player with assets in three key segments; 1) business space and life sciences, 2) logistics, and 3) industrial and data centres.
During Q3 FY2022, portfolio occupancy continued to improve while portfolio rental reversion remained positive at 5.4%.
Given its exposure in a diversified space, this should provide some stability for the REIT player as demand for logistics and data centres remain strong.
In fact, CapitaLand Ascendas REIT has announced the acquisition of two more properties in Singapore worth a total of S$296.7 million.
Nio delivered 10,059 vehicles in October, representing an increase of 174.3% yoy.
The deliveries consisted of 5,979 premium smart electric SUVs including 2,814 ES7s, and 4,080 premium smart electric sedans, including 1,030 ET5s and 3,050 ET7s.
This was in spite of the constraints faced in its operations due to the COVID-19 restrictions in certain regions of China.
The strong delivery numbers reflect the capabilities of management to navigate through the uncertainties in the supply chain.
Aside from that, Nio’s expansion plans into Europe are also likely to boost earnings growth in the near future.
The company has announced that that it will offer leases on its ET7, EL7 and ET5 models through a subscription model designed to encourage the shift towards EVs.
Another key question is the path to profitability for Nio and consensus is expecting the company to post its final loss in FY2023 before turning a profit in FY2024.
Given the continued support shown by the Chinese government to the EV industry – as well as the strong demand in China despite the supply chain disruptions – I believe Nio is worth having in one’s portfolio.
Take advantage of market weakness to build a balanced portfolio
In November, I believe it is a good time to buy into resilient companies, such as DBS Group and Sheng Siong, tap on the reopening theme with Singapore Airlines, accumulate S-REITs such as CapitaLand Ascendas REIT, and take advantage of market weakness to buy high growth stocks such as Nio.
Overall, the key is to build a balanced portfolio that allows investors to tap into emerging opportunities without taking excessive risk.
Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.
Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.