CapitaLand India Trust: Strong 1H FY2025 Results – DPU Up 9%

CapitaLand India Trust (CLINT) – 1H FY2025 Financial Report Analysis – Net Property Income Growth

Report Date: 30 July 2025 [[1]]

Reporting Period: 1H FY2025 (Financial year ending in 2025) [[1]]

Business Description:

CapitaLand India Trust (CLINT) is a real estate investment trust (REIT) focused on owning, developing, and managing a portfolio of primarily income-producing properties located in India. The portfolio includes IT parks, industrial facilities, logistics parks and data centres. [[5, 31]]

Key Financial Highlights & Investor Actions:

Positive Indicators (Reasons to Invest):

Strong Growth in Net Property Income (NPI): 1H FY2025 NPI increased by 10% YoY to S\$113.6 million. [[5]]
Distribution Per Unit (DPU) Increase: 1H FY2025 DPU increased by 9% YoY to 3.97 Singapore cents. [[5]]
Portfolio Growth: Asset Under Management (AUM) increased by 10% YoY to S\$3.7 billion. [[5]]
Healthy Occupancy: Committed occupancy at 90%, a 3 percentage point increase YoY. [[5]]
Rental Reversion: Positive rental reversion of 9%. [[5]]
Strategic Acquisitions: Proposed acquisition of 1.1 million sq ft office project at Nagawara, Bangalore will increase CLINT’s Bangalore portfolio. [[5]]
Data Centre Developments: Signed agreement with a global hyperscaler for a data centre, with income contribution starting in 2H 2025. [[5]]

Potential Risks & Considerations (Reasons for Caution):

Gearing Ratio: Gearing ratio is at 42.3% as of 30 June 2025, and a pro forma gearing of 40.1% in July 2025. [[5]]
Average Term to Maturity: Average term to maturity of borrowings is 2.5 years. [[12]]
Interest Coverage Ratio (ICR): Interest Coverage Ratio (ICR) is at 2.5x. [[13]]
Lease Expiry: 43% of monthly base rent is expiring in 2029 and beyond. [[19]]

Financial Statement Analysis Summary:

Income Statement:

Total Property Income increased by 10% YoY [[8]].
Net Property Income increased by 10% YoY [[8]].
Income available for distribution increased by 10% YoY [[8]].

Balance Sheet:

Total assets: S\$4,488.0 million. [[28]]
Effective borrowings: S\$1,897.9 million. [[12, 28]]
Net asset value: 1.29 per unit. [[5, 28]]

Dividend Information:

Distribution Per Unit (DPU): 3.97 Singapore cents for 1H FY2025 [[5, 10]]
Record Date: 9 September 2025 [[10]]
Distribution Payment Date: 18 September 2025 [[10]]

Strategies to Improve Profitability:

Increase occupancy, improve space efficiency, and diversify tenant base. [[6]]
Increase the proportion of onshore debt to minimize the impact of exchange rate fluctuations. [[6]]
Focus on core micro-markets of growth via forward purchases. [[6]]
Explore new developments and redevelopment of existing assets. [[6]]
Potential divestment of 33% stake in the data centre portfolio to unlock value, deleverage and reduce capital expenditure. [[6]]

Investment Recommendation:

For Current Holders: Given the strong growth in NPI, DPU, and AUM, coupled with healthy occupancy rates and strategic acquisitions, it may be prudent to hold onto your CLINT stock. The positive rental reversion and potential income from the data centre development further support this recommendation. However, closely monitor the gearing ratio and interest coverage ratio.

For Potential Investors: CLINT presents an attractive investment opportunity, especially considering its focus on the growing Indian market. The REIT’s strong financial performance, strategic acquisitions, and data centre developments make it a compelling option. Consider initiating a buy position, but be mindful of the gearing ratio and interest rate risks.

Disclaimer: This is a general recommendation based solely on the provided financial report and should not be considered financial advice. Investors should conduct their own due diligence and consider their individual risk tolerance and investment objectives before making any investment decisions.