NEW YORK, NY / ACCESSWIRE / June 26, 2017 / Xinyuan (NYSE: XIN) is a Chinese real estate developer that focuses on developing residential real estate in Chinese cities. Since its inception, the company has completed 41 projects and successfully sold 97% of their condos in these projects. This compares favorably to China's historical housing vacancy rate of 15%. Xinyuan has also expanded into the U.S. market recently, with residential buildings throughout New York City's boroughs.

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Key Report Highlights:

Xinyuan has a large opportunity within the booming Chinese real estate market. The Chinese real estate market is worth over a trillion dollars, which contributes 15% of China's total GDP and the growth has remained rapid. In 2015, there were a trillion dollars' worth of new home sales in China and this figure rose by 34% in 2016. Industry-wide, real estate contract sales are projected to grow another 15% in 2017.

Xinyuan is very shareholder friendly. Over the past 12 months, Xinyuan has doubled the dividend and approved a new $40 million share repurchase program. The former action increased its dividend yield to 8.1%, and the latter program is authorized through December 2019 and adds to the $9 million remaining (as of December 31, 2016) under their previous buyback authorization. This dividend is very attractive in our view, even when compared to Xinyuan's competitors and with only a 28.3% payout ratio, these distributions are sustainable in our view.

Debt refinancing allows Xinyuan to significantly improve earnings in the next few years. On June 9th, Xinyuan announced the filing with the Singapore Exchange regarding the redemption of $200 million of its 13% senior notes due 2019, which will be funded using 7.75% Senior Notes due 2021. This refinancing can have a positive impact on the company's financials, Xinyuan has $2 billion of debt, and paid $29 million in interest expense in 2016, compared with only $72 million in net income.

Entering the U.S. market differentiate Xinyuan from its competitors. The majority of Chinese real estate companies rely exclusively on the performance of the Chinese real estate market. As a result, with the possibility of more restrictive regulations from the Chinese government, there could be significant looming negative effects on Chinese real estate company's sales. However, Xinyuan's expanding U.S. properties would be unaffected and contribute a growing percentage of the company's sales, which lowers the concentration risk of investing in Xinyuan due to their diversified portfolio.

JGR Capital Partners is being compensated by Xinyuan Real Estate Co., Ltd for producing research materials regarding Xinyuan Real Estate Co., Ltd and its securities. Payment is made in cash and is billed one time and upfront for an annual subscription. As of 06/08/2017 the issuer had paid us $33,250 for our services, which commenced 05/15/2017. Additional fees may have accrued since then. Disclosures pertaining to this report can be found at www.jgrcapitalpartners.com.

SOURCE: JGR Capital Partners