CapitaLand China Trust (CLCT) has announced a net property income (NPI) of RMB580.3 million for the first half of 2025, reflecting a decrease due to reduced gross revenue. This decline was partially offset by a 2.5% reduction in operating expenses across its portfolio. The retail portfolio’s performance was impacted by ongoing upgrades at three malls, whilst the logistics parks portfolio saw a 2% year-on-year increase.
The trust’s Distribution Per Unit (DPU) for the period was 2.49 Singapore cents, affected by the NPI decline and the weakening of the Renminbi against the Singapore Dollar. However, savings in finance costs provided some relief. CLCT’s strategic divestment of CapitaMall Yuhuating to CapitaLand Commercial C-REIT (CLCR) was approved by Unitholders, with the divestment expected to enhance financial flexibility.
Gerry Chan, CEO of CLCTML, highlighted the resilience of the portfolio amidst economic challenges, noting high retail occupancy at 96.9% and increased occupancy in business parks and logistics sectors. Chan stated, “By focusing our business parks and logistics parks on sectors aligned with the government’s priorities, we are well-positioned to capture policy-driven opportunities as China pursues high-quality growth.”
The trust is also advancing its capital management strategy, increasing RMB-denominated debt to 41% of total debt, aiming for a 50% target by year-end. This move is intended to mitigate foreign exchange fluctuations and optimise funding costs. CLCT’s commitment to sustainability is evident, with 68% of its portfolio now green-certified, and a significant increase in sustainability-linked loans. The trust’s 1H 2025 income distribution is scheduled for 24 September 2025.
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