CapitaLand China Trust China NDR Investor Presentation: Key Takeaways for Investors

Overview

CapitaLand China Trust (CLCT), the largest Singapore-listed REIT platform focused exclusively on China, delivered a comprehensive investor presentation detailing its portfolio, financial metrics, asset management strategies, and future outlook. As of November 2025, the trust manages a diversified portfolio across retail malls, business parks, and logistics parks, with strategic capital recycling initiatives and asset upgrades driving performance.

Key Financial and Portfolio Metrics

• Total Assets: S\$4.5 billion
• Market Capitalization: S\$1.4 billion
• Distribution Yield: 6.2% (based on unit price of S\$0.825)
• Total GFA: ~1.7 million sqm across 17 properties in 11 cities
• Portfolio Composition: Retail (69.9%), Business Park (26.5%), Logistics Park (3.6%)
• Portfolio Occupancy: 90.6% overall (Retail: 97.1%, Business Park: 85.2%, Logistics: 96.6%)

Strategic Asset Recycling and Value Unlocking

KaiDe Mall·Yuhuating Disposal: CLCT successfully injected KaiDe Mall·Yuhuating into the CapitaLand Commercial C-REIT, China’s first foreign-sponsored C-REIT. The transaction was executed at a price about 4% above its 2024 book value, achieving a capitalisation rate of 6.2% for a tier-2 city asset. This strategic move not only unlocked value for CLCT but also enhanced financial flexibility, setting a precedent for future asset recycling.
The C-REIT IPO saw record oversubscription (Institutional: 254.5x, Retail: 535.2x), raising RMB 2.29 billion (7% above expectations), and the units opened 19.6% above IPO price. CLCT and affiliates retain a 20% interest, maintaining exposure to C-REIT growth.

Asset Enhancement Initiatives Driving Organic Growth

CLCT’s core competitive advantage lies in its ability to unlock value through asset enhancements. Recent projects include:

• KaiDe Mall·Wangjing: Reconfigured 8,800 sqm supermarket space into high-yield retail, 100% leased, generating ROI of 12.6%. Post-renovation, mall traffic up 13% and tenant sales up 21% during Golden Week. Supermarket sales per sqm reached RMB 6,000, leading performance in North China.
• KaiDe Mall·Xuefu (Harbin): Upgraded supermarket brand, resulting in rental growth of 13.1%. New supermarket achieved >7x sales efficiency versus previous operator, with tenant sales up 33% and footfall up 31%.
• Other malls (Yuhuating, Daxiagu, Lefeng): Renovations delivered ROIs ranging from 13% to 15%, introducing diversified retail concepts and improving customer experience.

Operational Performance and Market Resilience

• Retail Malls: Sales up 2.3% YTD September 2025, footfall up 4.5%. Key retail categories (toys, electronics, jewellery, F&B) posted double-digit growth. Rental cost ratio declined to 17.7%, below pre-pandemic levels. Retail occupancy consistently above 95%.
• Business Parks: Occupancy at 85.2%, with flagship assets (Suzhou, Xi’an) outperforming local market averages. Targeted leasing and incentives implemented to counter market headwinds in Hangzhou.
• Logistics Parks: High occupancy (96.6%), with strategic tenant renewals and stable rental income. Early renewal with anchor tenants at Wuhan Yangluo Logistics Park.

Capital Management and Financial Health

• Leverage: 38.8% post-Yuhuating disposal (up to 41.3% after redemption of perpetuals), well within regulatory limits.
• Debt Profile: S\$1.66 billion total debt, average cost 3.36%, ICR 2.9x, average maturity 3.4 years.
• Currency and Interest Rate Management: 55% debt in SGD, 45% in RMB (can increase to 80% via swaps), 80% fixed rate. Strategic refinancing of 2026 SGD debt to RMB in Q4 2025 enhances natural hedge and stability.
• Liquidity: No significant near-term refinancing pressure; staggered maturity profile.

Portfolio Risk Management and Tenant Diversification

• Top 10 tenants contribute only 8.8% of rental income, reducing concentration risk. Diverse exposure across e-commerce, fashion, F&B, logistics, and financial services.
• WALE: 2.1 years by income, 2.6 years by NLA, indicating balanced lease expiry profile.

Share Price Sensitive Information and Potential Catalysts

• Asset disposal above book value and capital recycling into higher-yielding assets demonstrates management’s ability to unlock and create value, which may positively impact future distributions and share price.
• Successful entry and investment in China’s fast-growing C-REIT market provides new exit channels for matured assets, improves portfolio flexibility, and gives unitholders exposure to another growth platform.
• Strong organic growth from asset enhancements and resilient operational metrics in retail and logistics sectors could translate into higher distributable income and support share price re-rating.
• Healthy capital management and proactive refinancing reduce funding risks, particularly currency and interest rate volatility, enhancing investor confidence.
• Attractive distribution yield (6.2%) and high trading liquidity relative to other Singapore REITs and government bonds may draw yield-focused investors.

Forward Strategy

• Continue leveraging C-REIT platform for capital recycling of matured assets.
• Reinvest proceeds into higher-growth retail assets and further upgrades of logistics and business parks.
• Target RMB-denominated debt at 50% or above for natural hedge.
• Maintain disciplined portfolio diversification and proactive risk management.

Conclusion

CapitaLand China Trust’s latest presentation demonstrates robust asset management, strategic capital recycling, and strong operational performance despite macro challenges. The successful asset disposal, entry into the C-REIT market, and ongoing enhancement initiatives position CLCT for sustainable growth and higher returns, all of which are price-sensitive developments that could influence share value in the near term.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information herein is based on materials provided by CapitaLand China Trust as of November 2025 and may be subject to change.

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