Singapore · Delayed Price · Currency is SGD CapitaLand China Trust Earnings Call Transcripts
Fiscal Year 2026
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Total assets rose to SGD 4.6 billion, with strong retail performance and improved leverage. Gross revenue and NPI declined year-over-year, but same-store DPU increased 2.9%. Cost reductions and a pivot to renminbi debt lowered interest expenses, while retail and supermarket upgrades drove tenant sales growth.
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Portfolio revenue and NPI were impacted by a major retail divestment, but same-store NPI rose 1.3% year-on-year. Retail and logistics segments showed resilience, while business parks faced ongoing headwinds. Cost of debt was reduced to 3.1%, and leverage remains stable.
Fiscal Year 2025
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Total assets reached SGD 4.5 billion, with retail as the largest and most resilient segment. FY2025 saw a 9% drop in revenue and NPI, but occupancy improved and a one-time DPU top-up was provided. Management is focused on acquiring new retail assets and further cost savings in 2026.
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Retail and logistics segments showed resilience, while business parks faced occupancy and reversion challenges. Asset recycling via C-REIT and proactive capital management supported financial stability, with a focus on defensive retail assets and cautious outlook for rental growth.
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Unitholders approved participation in the new CLCR platform, with retail remaining resilient despite a 6.3% year-over-year revenue decline. AEI completions and improved business park occupancy are expected to support performance in 2H 2025, while capital management and sustainability initiatives progress.
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A two-step divestment of CapitaMall Yuhuating to CLCR enables flexible use of proceeds and a 5% strategic stake, with no double management fees. Valuations set a floor price at RMB 748 million, but a higher sale price is possible. CLCR will be the first foreign-sponsored retail C-REIT in China, with strong market demand and a robust asset pipeline.
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Gross revenue and NPI declined over 6% year-over-year, mainly due to supermarket upgrades and a major tenant exit in Hangzhou. Retail occupancy remains high, with logistics showing growth and business parks facing headwinds. Gearing rose to 42.6%, with active capital management and new AEIs expected to drive future growth.
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A new consumption-focused C-REIT will be listed in Shanghai, with CLCT, CLI, and CLD as joint strategic investors holding a 20% stake, subject to a five-year lock-up. CapitaMall Yuhuating will be the seed asset, and proceeds may be used for debt reduction or unit buybacks. The C-REIT targets domestic investors and aims to unlock value and diversify funding channels.
Fiscal Year 2024
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Retail assets remained resilient with strong occupancy and AEI-driven growth, while business parks and logistics faced headwinds from lower occupancies and negative rental reversions. Cost optimization and refinancing efforts helped stabilize margins, and further AEIs and portfolio reconstitution are planned to unlock value in 2025.
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Retail assets showed resilience with improved occupancy and AEI-driven growth, while logistics and business parks faced ongoing headwinds, leading to a 3.4% year-over-year revenue decline. Active capital management and government stimulus are expected to support future recovery.
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Portfolio reshaping and AEIs drove improved retail performance, with double-digit traffic growth and stable occupancy, while logistics and business parks faced headwinds from oversupply and negative rental reversions. Gearing remains healthy at 40.8%, with active refinancing and capital recycling ongoing.