CapitaLand China Trust (AU8U) Q3 2025 earnings summary

Executive summary

• Retail remains the dominant segment at 69.9% of GRI after the divestment of CapitaMall Yuhuating via C-REIT securitization, with business parks at 26.5% and logistics at 3.6%.

• Gross revenue declined 8.0% year-on-year to RMB 416.6 million, and NPI fell 8.5% to RMB 273.5 million, mainly due to the Yuhuating divestment and lower retail/business park performance.

• Distribution yield stands at 6.2%, with stock price compression reflecting broader S-REIT trends.

• Successful listing of China's first international sponsored retail C-REIT (CLCR) on the Shanghai Stock Exchange, with CLCT holding a 5% stake and record subscription.

• Retail revenue fell 8.4% YoY, but only 1.8% YoY excluding CapitaMall Yuhuating; logistics park revenue rose 13% YoY on improved occupancy.

Financial highlights

• Retail occupancy: 97.1%; business park occupancy: 85.2%; logistics park occupancy: 96.6%.

• Retail reversion: -1.5% (9M 2025); business park reversion: -8.9%; logistics park reversion: -24.5%.

• Tenant sales rose 3.2% and shopper traffic increased 4.5% year-on-year in Q3; for 9M 2025, tenant sales up 1.1% and shopper traffic up 2.3%.

• Key trade categories like F&B (+5.1%), InfoTech (+12.8%), toys and hobbies (+56%), and jewelry/watches (+60.6%) showed strong growth.

• NPI decreased 8.5% year-on-year, but cost reduction efforts offset some of the decline.

Outlook and guidance

• Retail rental reversions are expected to remain flat to slightly negative, with cautious optimism for improvement next year.

• Focus remains on raising occupancy in business parks before pushing for positive rental reversions.

• Actively scanning the market for new retail acquisitions, prioritizing defensive, well-located assets.

• Strategy centers on leveraging the C-REIT platform for asset recycling and capital management.

• Government stimulus and policy support expected to boost domestic consumption and innovation.