CLINT: HY Ended June 2025 – Net Profit Decline Analysis

Report Overview

• Date: July 30, 2025
• Financial Year: Half Year Ended June 30, 2025

Business Description

CapitaLand India Trust (CLINT) is a business trust focused on owning income-producing real estate, primarily business space, in India. CLINT may also develop and acquire land or uncompleted developments to be used as business space. [[1]]

As of June 30, 2025, CLINT’s portfolio includes ten IT business parks, three industrial facilities, one logistics park, and four data center developments across Bangalore, Chennai, Hyderabad, Pune, and Mumbai. [[1]] In addition, the Trust holds land with potential built-up area of 4.6 million sq ft. [[1]]

Financial Statement Analysis

Income Statement

• Total Property Income: Increased by 14% to INR 9.6 billion (S\$149.3 million), driven by higher rental income from existing properties, contributions from newly completed properties (MTB 6 in ITPB and CyberVale Free Trade Warehousing Zone), and income from aVance II, Pune and Building Q2. [[4]]
• Total Property Expenses: Increased by 14% to INR 2.3 billion (S\$35.7 million), due to higher property-related expenses. [[4]]
• Net Property Income: Increased by 14% to INR 7.3 billion (S\$113.6 million). [[4]]
• Finance Costs: Increased by INR 437.6 million (16%) to INR 3.1 billion (S\$48.1 million) mainly due to an increase in borrowings. [[35]]
• Ordinary Profit Before Tax: Decreased by 22% to INR 3.5 billion. In SGD terms, decreased by 25% to S\$54.4 million. [[36]]
• Net Profit After Tax: Decreased by 77% to INR 879.242 million. [[41]]

Distribution Statement

• Income Available for Distribution: Increased by 15% to INR 3.8 billion (S\$59.6 million). [[5]]
• Distribution Per Unit (DPU): Increased by 14% to INR 2.56. In SGD terms, DPU increased by 9% to 3.97 S₵. [[5]]
• Distribution Period: January 1, 2025 to June 30, 2025
• Distribution Amount: 3.97 Singapore cents per unit [[4]]
• Ex-distribution Date: 9:00 am, September 8, 2025 [[4]]
• Record Date: 5:00 pm, September 9, 2025 [[4]]
• Payment Date: September 18, 2025 [[4]]

Balance Sheet

• Assets Under Management: S\$3.7 billion as at June 30, 2025. [[1]]
• Gearing: 42.3% on a loan-to-value basis as at June 30, 2025. [[5]]
• Net Asset Value (NAV) per unit: Decreased by 7% to S\$1.29 as compared to December 31, 2024. [[5]]

Key Facts for Investor Action

• Positive: Increase in total property income and net property income, driven by acquisitions and higher rental income. [[4]]
• Positive: Increase in Income available for distribution and DPU in both INR and SGD terms. [[5]]
• Negative: Significant decrease in net profit after tax (77%). [[41]]
• Negative: Decrease in NAV per unit. [[5]]
• Positive: Planned power load capacity of ~105 Mega Watts to be developed over two Towers for CapitaLand DC Navi Mumbai Tower 1 and 2, with Tower 1 fully committed to a large global hyperscaler, and the first phase of Tower 1 will be handed over to the hyperscaler in 3Q 2025. [[38]]

Strategic Initiatives

• Redevelopment at ITPH to increase leasable area. [[38]]
• Development at ITPB with construction of MTB 7 and MTB 8. [[38]]
• Expansion of data center capacity with CapitaLand DC Navi Mumbai, ITPH, Chennai and ITPB. [[38]]

Investment Recommendations

For Current Holders: Given the mixed signals – increased revenue and DPU but decreased net profit and NAV – it’s crucial to monitor CLINT’s progress closely. The increase in revenue and DPU indicates positive operational performance, but the decline in net profit and NAV raises concerns about profitability and asset valuation. Consider holding if you have a high-risk tolerance and believe in the long-term growth potential of CLINT’s Indian real estate portfolio, particularly its data center initiatives. Otherwise, consider trimming your position to reduce risk.

For Potential Investors: The current report presents a cautious outlook. While the increase in revenue and DPU is encouraging, the significant decrease in net profit and NAV warrants careful consideration. The company’s strategic initiatives, such as the expansion of data center capacity, may offer long-term growth potential. However, potential investors should conduct thorough due diligence and assess their risk tolerance before investing. Consider waiting for more clarity on CLINT’s profitability and asset valuation before initiating a position.

Disclaimer: This analysis is based solely on the provided financial report and is intended for informational purposes only. It does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.

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