CapitaLand China Trust (AU8U) H1 2026 earnings summary

Executive summary

• Total assets reached SGD 4.6 billion as of 30 June 2026, with a market cap of SGD 1.1 billion and a distribution yield of 7.4%.

• Portfolio comprises eight retail malls, five business parks, and four logistics assets in Tier 1 and 2 cities, diversified across retail (70.6% of GRI), business parks (26.0%), and logistics parks (3.4%).

• Retail assets contribute 70% of gross rental income and remain highly resilient with occupancy rising to 97.3%.

• DPU for 1H 2026 was 2.45 Singapore cents, flat year-over-year but up 2.9% on a same-store basis, supported by resilient retail and improved financing.

• Net property income declined year-over-year, mainly due to the divestment of CapitaMall Yuhuating and softer performance at select properties.

Financial highlights

• Gross revenue for H1 2026 was RMB 822.6 million, down 5.2% year-over-year; NPI was RMB 561 million, down 3.3% year-over-year; DPU was SGD 0.245.

• On a same-store basis, DPU rose 2.9% year-over-year, excluding the divested Yuhuating asset.

• Retail revenue increased 0.8% year-over-year on a same-store basis, with improved performance at key malls post-AEI and income from forfeited tenant deposits.

• Operating costs reduced by 3.5% year-over-year; interest costs cut by 16% (SGD 5 million savings).

• Amount available for distribution to unitholders was SGD 43.2 million, down 4.4% year-over-year.

Outlook and guidance

• Strategy focuses on expanding retail presence in Tier 1 and 2 cities, maintaining stable occupancy in business and logistics parks, and recycling mature assets.

• Negative rental reversions expected to persist in business parks through 2026 and possibly into 2027 due to supply pressures.

• Retail rental reversions may remain negative in the near term despite strong tenant sales.

• Management continues to monitor macroeconomic risks, including energy and shipping volatility from Middle East tensions, but notes China's proactive fiscal and monetary policies.

• Recovery in business and consumer confidence is expected to remain gradual amid property sector adjustments and external uncertainties.