-- CapitaLand China Trust (CLCT) reported a net property income (NPI) of RMB580.3 million for the six months ended 30 June 2025 (1H 2025). NPI was impacted by lower gross revenue, partially mitigated by a 2.5% year-on-year (y-o-y) reduction in operating expenses across CLCT’s overall portfolio.
In 1H 2025, CapitaLand China Trust enhanced its portfolio by upgrading three retail malls, transforming former anchor supermarket spaces into higher-yielding concepts. CapitaMall Xuefu in Harbin (as pictured) had its space reconfigured to house a local supermarket operator, B.U.T., alongside an animation, comics and gaming street. Within a month of the supermarket’s June opening, mall tenant sales rose by more than 33% y-o-y.
The decrease in gross revenue was attributed to lower contributions from the retail portfolio, largely due to ongoing supermarket upgrades at three retail malls, and lower occupancy at the business parks portfolio. This was partially offset by stronger performance from the logistics parks portfolio, which recorded a 2.0% y-o-y increase.
CLCT’s 1H 2025 Distribution Per Unit (DPU) was 2.49 Singapore cents. The lower DPU resulted from a decline in NPI and the weakening of the Renminbi (RMB) against the Singapore Dollar (SGD), which was partially offset by savings in finance costs. Including distributions from CapitaMall Yuhuating, which were retained1 in view of its divestment to CapitaLand Commercial C-REIT (CLCR) as a seed asset, the DPU would have been 2.59 Singapore cents.
On 29 July 2025, CLCT obtained Unitholders’ approval for the divestment of CapitaMall Yuhuating to CLCR for no less than the minimum floor price of RMB748 million (approximately S$134.9 million) and CLCT’s subscription for a 5% strategic stake in CLCR. With Unitholders’ approval received, CLCT, together with its sponsor CapitaLand Investment and CapitaLand Development, who are joint strategic investors in CLCR, will proceed to seek the local authorities’ approval for the listing of CLCR targeted around 3Q/4Q 2025. CLCT’s receipt of the gross proceeds from the divestment is subject to and shall take place after the completion of the CLCR offering.
Mr Gerry Chan, CEO of CLCTML, the manager of CLCT, said: “Despite ongoing economic headwinds in China, our portfolio continues to demonstrate resilience. Our retail occupancy remained high at 96.9% in 1H 2025, while we increased the occupancy of our business parks and logistics portfolio by proactively attracting tenants in key sectors aligned with China’s technology ambitions. In 2025, we are prioritising the repositioning of our retail malls with unique and customer-centric offerings to address changing shopper preferences. 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.”
“We remain focused on seizing opportunities in China’s domestic market, including our strategic participation in the C-REIT, which offers new capital recycling pathways and attractive growth potential. The divestment of CapitaMall Yuhuating will unlock value from a mature retail asset, enhance our financial flexibility and strengthen our balance sheet. Through CLCT’s strategic stake in CLCR, we will continue to enhance long-term, sustainable returns for our Unitholders."
"As part of our disciplined capital management, we have leveraged the easing interest rates in China to increase our RMB-denominated debt. The RMB share of total debt rose from 27% in 1H 2024 to 41% in 1H 2025, and we remain on track to meet our 50% target by end 2025. This strengthens our natural hedging position, mitigates foreign exchange fluctuations and optimises funding costs,” added Mr Chan.
Mr Gerry Chan, CEO of CLCTML
CapitaMall Wangjing
Operating performance
As at 30 June 2025, CLCT’s retail portfolio occupancy stood at 96.9%. Footfall across the retail portfolio increased by 1.0% y-o-y, while tenant sales rose by 0.1% y-o-y, moderated by ongoing asset enhancement initiatives. Excluding sales from supermarkets in CapitaMall Xuefu in Harbin, and CapitaMall Wangjing and CapitaMall Xizhimen in Beijing, where upgrades are underway, tenant sales would have increased by 2.5% y-o-y. Sales in key trade sectors such as Toys & Hobbies, Jewellery & Watches and Information & Technology increased by 46.0%, 18.0% and 17.8% y-o-y, respectively. This was mainly due to the government’s policies supporting domestic consumption, the rising popularity of the collectible toy market, as well as the continued demand for gold products.
Occupancy of CLCT’s business parks grew from 83.7% as at 31 March 2025 to 86.9% as at 30 June 2025, matching or outperforming sub-market levels despite oversupply. CLCT’s logistics parks continued to demonstrate resilience with occupancy rate rising to 96.6% as at 30 June 2025 from 95.7% as at 31 March 2025. Three out of four logistics assets are fully leased.
Asset enhancement initiatives
In 2025, CLCT is focused on converting traditional anchor supermarket areas in CapitaMall Xuefu, CapitaMall Wangjing and CapitaMall Xizhimen into higher-yielding, customer-centric retail concepts to unlock higher rental value. These conversions aim to enhance the trade mix and improve shopper experience.
CapitaMall Xizhimen
At CapitaMall Xuefu, approximately 8,700 sqm has been reconfigured to house a leading local supermarket operator, B.U.T., alongside an animation, comics and gaming street designed to attract younger shoppers. The conversion has increased total rent by approximately 13.1%. Within one month of the supermarket’s opening on 18 June 2025, mall tenant sales rose by more than 33% y-o-y. The themed street is scheduled to launch in 3Q 2025 and is already fully leased.
Approximately 8,800 sqm of space at CapitaMall Wangjing is being transformed to introduce a new retail concept, 7Fresh by JD.com, and 17 popular retail and F&B outlets. The revitalised area is expected to open in 4Q 2025, with a target return on investment of approximately 10%. CLCT has secured close to 78% pre-leasing commitment for the converted space (by net lettable area), with an additional 9% under advanced negotiations, reflecting robust market interest.
At CapitaMall Xizhimen, approximately 10,100 sqm will be converted to house a premium supermarket, multi-brand boutiques targeted at mid- to high-end consumers, and curated social spaces. The completion of the converted space is targeted for 4Q 2025.
Proactive capital management
As part of its disciplined capital management strategy, CLCT continued to maintain a strong balance sheet with a well-staggered debt maturity profile and diversified sources of funding. As at 30 June 2025, CLCT’s cost of debt stood at 3.42% per annum, reflecting a reduction of 9 basis points from 31 March 2025. CLCT maintained a healthy interest coverage ratio of 2.9 times, while gearing remained stable at 42.1%, below the regulatory limit of 50%.
CLCT completed the refinancing of all loans due in FY 2025. As at 30 June 2025, the average term to maturity of its borrowings was 3.6 years.
To mitigate interest rate fluctuations, 87%2 of CLCT’s total debt is on fixed interest rates. In April 2025, CLCT issued a RMB600 million bond due 2028 at 2.88% per annum. As at 30 June 2025, the proportion of its RMB denominated loan facilities stood at 41% of its total debt, on track to meeting its 50% target by end 2025.
Sustainability initiatives
In line with CLCT’s commitment to sustainability, it has obtained LEED Gold certification for the R&D blocks of Ascendas Xinsu, a business park in Suzhou. This increased CLCT’s green-certified properties to 68% of its total portfolio as at 30 June 2025.
The proportion of CLCT’s sustainability-linked loans increased from 33% as at 30 June 2024 to 51% as at 30 June 2025, reflecting the Trust’s continued focus on sustainable financing.
Distribution schedule
CLCT’s record date for 1H 2025 income distribution is 7 August 2025. The payment date for 1H 2025 DPU of 2.49 Singapore cents is 24 September 2025.
--------------------------------
1. The amount retained refers to the distribution contributed from CapitaMall Yuhuating from 1 April 2025 to 30 June 2025 (2Q 2025) attributable to CLCR, assuming that the initial PRC valuation date pertaining to the divestment to CLCR is 31 March 2025.
2. Assuming RMB debts are fixed.
Release ID: 89166013
Google
RSS