CapitaLand China Trust’s Q3 net property income down 8.5% at 273.5 million yuan
Revenue for Q3 falls 8% on the year to 416.6 million yuan
[SINGAPORE] CapitaLand China Trust (CLCT) posted net property income (NPI) of 273.5 million yuan (S$50 million) for its third quarter ended Sep 30, down 8.5 per cent from 298.9 million yuan in the previous corresponding period.
The lower NPI was mainly due to a drop in revenue and absence of contributions from CapitaMall Yuhuating for Q3, which has been excluded from records as at Jun 30. It was divested to CapitaLand Commercial C-Reit as part of the Shanghai-listed Reit’s seed portfolio.
However, this drop was partially offset by a cost reduction of 1.3 per cent year on year (yoy) on a same-store basis, the manager said on Thursday (Oct 30) in a business update.
Excluding CapitaMall Yuhuating’s contribution in Q3 2024, NPI would have fallen 4.4 per cent yoy, the manager added.
Revenue for Q3 fell 8 per cent on the year to 416.6 million yuan, from 452.8 million yuan, driven mainly by the absence of contributions from CapitaMall Yuhuating, lower rents and occupancy at CapitaMall Xinnan, and anchor tenant repositioning at Rock Square.
Business park revenue fell 9.1 per cent due to lower occupancy at Singapore-Hangzhou Science and Technology Park Phase II, which recorded an occupancy of 70.7 per cent as at Sep 30, 2025, down from 85.5 per cent as at Sep 30, 2024.
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Meanwhile, logistics park revenue climbed 13 per cent yoy due to higher occupancy at Shanghai Fengxian Logistics Park, which stood at 100 per cent as at September.
For the nine months ended September, CLCT’s portfolio shopper traffic rose 2.3 per cent on the year as tenant sales edged up 1.1 per cent.
This followed higher sales across key sectors, led by the toys and hobbies sector – which logged a 56.4 per cent yoy sales growth amid rising popularity of the collectible toy market.
This was followed by the jewellery and watches sector with a 16.6 per cent uptick in sales, the information and technology sector at 12.8 per cent, and the food and beverage sector at 5.1 per cent.
During China’s Golden Week in October, traffic was up 4.6 per cent yoy as total sales rose 3.9 per cent, the manager noted.
Retail occupancy stood at 97.1 per cent as at Sep 30, 2025, compared with 97.9 per cent as at Sep 30, 2024. Retail reversion came in at negative 1.5 per cent for the nine months ended September, driven by strategic upgrades – including Rock Square’s repositioning.
Business park occupancy was at 85.2 per cent as at September, down from 87.3 per cent as at September 2024. Reversion for the business park portfolio stood at negative 8.9 per cent for the nine months ended September.
Logistic park occupancy rose to 96.6 per cent as at end-September, from 72.5 per cent in September 2024, with reversion of negative 24.5 per cent.
In terms of capital management, CLCT’s total debt as at Sep 30, 2025, was around S$1.7 billion, compared to S$1.8 billion as at June. Gearing was down at 38.8 per cent from 42.1 per cent.
Interest coverage ratio as at Sep 30 was 2.9 times, unchanged from June. Average cost of debt was roughly steady at 3.4 per cent, while average term to maturity dropped to 3.4 years from 3.6 years.
Outlook
The manager noted that Chinese regulators announced fiscal and monetary stimuli aimed at boosting domestic consumption and economic growth.
“While these efforts are underway, the recovery of business confidence will take time, with a lag expected before the effects are fully felt,” the manager said.
It added that CLCT’s portfolio aligns with the government’s priorities and focuses on domestic consumption.
The manager said CLCT has embarked on asset enhancements for malls in its retail portfolio, to convert low-yielding spaces into higher-yielding areas with improved trade mixes to unlock higher rental value.
While market pressures and cautious business sentiment are expected to lead to “weakness in average rental prices and occupancy” at CLCT’s business parks, “supportive government policies targeting key technology sectors, could help CLCT capture growth opportunities in emerging tech industries”, the manager said.
For logistics parks, CLCT is exploring portfolio reconstitution opportunities, it added.
Units of CLCT ended Thursday 3.1 per cent or S$0.025 lower at S$0.79.
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