CapitaLand China Trust (AU8U) H2 2025 earnings summary

Executive summary

• Total assets reached S$4.5 billion, with a market cap of S$1.3 billion and a diversified portfolio focused on retail (69%), business parks (27%), and logistics parks (3.7%) in tier one and two Chinese cities.

• Retail remains the largest and most resilient segment, supported by government policies and contributing the majority of gross rental income.

• FY 2025 distributable income was S$83.9 million, with a DPU of 4.82 Singapore cents and an implied yield of 6.2%.

• Strategic asset repositioning, AEIs, and portfolio reconstitution are ongoing, with a focus on acquiring new retail assets and leveraging capital recycling platforms like C-REIT.

• Successful divestment and securitization of CapitaMall Yuhuating at a premium, and entry into the C-REIT market.

Financial highlights

• FY 2025 gross revenue declined 9.1% year-on-year to RMB 1,670 million; net property income fell 9.4% to RMB 1,104.6 million.

• Retail revenue dropped 9.6% year-on-year, mainly due to the absence of CapitaMall Yuhuating and AEI downtime; logistics park revenue rose 5.0% year-on-year.

• DPU for FY 2025 was 4.82 Singapore cents, including a one-off top-up of SGD 0.33 cents in 2H25 to offset lost income from Yuhuating.

• Portfolio valuation eased by 0.8% year-on-year, with retail and logistics assets facing more downside pressure.

• Full-year occupancy improved to 98.1%, with retail at 97.2%, business parks at 86.7%, and logistics fully leased from July 2025.

Outlook and guidance

• Management is focused on acquiring new retail assets in 2026, further cost savings, and expanding retail presence in Tier 1 and 2 cities.

• Rental reversions for retail expected to remain mildly negative in 2026, but less so than 2025.

• Borrowing costs expected to decrease slightly in 2026, with further opportunities for reduction in subsequent years.

• Further asset securitization through the C-REIT platform is planned, with regulatory processes expected to take about a year per asset.

• Emphasis on building a resilient, high-quality portfolio aligned with China's economic priorities.