CapitaLand China Trust (AU8U) H1 2025 earnings summary

Executive summary

• Unitholders approved participation in the new CLCR platform and the divestment of CapitaMall Yuhuating, with 99.5% support, unlocking value and broadening capital market access.

• Portfolio comprises 18 properties (9 retail malls, 5 business parks, 4 logistics parks) across 12 Chinese cities, with retail as the largest segment by GRI and asset value.

• 1H 2025 gross revenue declined 6.3% year-over-year to RMB 867.6 million (S$159.2 million), and net property income fell 8.1% to RMB 580.3 million (S$106.5 million), mainly due to lower rents, occupancy, and weaker RMB.

• DPU after retention was 2.49 S cents, a 17.3% decrease year-over-year, mainly due to lower NPI and RMB depreciation.

• Portfolio occupancy remained high: retail at 96.9%, business parks at 86.9%, and logistics parks at 96.6%.

Financial highlights

• Gross revenue: RMB 867.6 million (down 6.3% YoY); NPI: RMB 580.3 million (down 8.1% YoY); distributable income: S$43.4 million (down 15.4% YoY).

• DPU after retention: 2.49 S cents (down 17.3% YoY); before retention: 2.59 S cents (down 14.0% YoY).

• Cost savings of 2.5% YoY partially offset revenue decline; excluding one-off bad debt, cost savings would be 3.6%.

• Net asset value per unit: S$1.04 (down from S$1.12 at end-2024).

• Trading yield improved to 6.6% (trailing 12-month DPU).

Outlook and guidance

• AEI completions and backfilling of business park vacancies expected to contribute positively in 4Q 2025.

• Retail and business park rental reversions expected to be flat or slightly better in 2H 2025 as one-off impacts subside.

• Cost of debt expected to remain stable in 2H 2025, with further improvement anticipated in 2026 as more renminbi debt is secured.

• Macro uncertainties persist, but government stimulus, easing trade tensions, and buoyant domestic equity markets may support gradual recovery.

• Focus on repositioning retail malls with unique, customer-centric offerings and strategic participation in C-REIT to unlock value.