[SINGAPORE] The manager of CapitaLand China Trust (CLCT) posted a net property income (NPI) of 292.5 million yuan (S$52.8 million) for the first quarter of financial year 2025, down by 6.6 per cent from 313.1 million yuan in the previous corresponding period.
Gross revenue fell 6.1 per cent to 439.7 million yuan for the quarter, from 468.1 million yuan in the year-ago period, amid declines in retail and business park revenue and an increase in logistics parks revenue.
The lower NPI was driven by the drop in gross revenue but was partially offset by savings in operating expenses of 5 per cent year on year for the overall portfolio, the manager said in a business update on Thursday (Apr 24).
Retail revenue fell by 2.7 per cent due to lower rents at CapitaMall Xinnan, although the decline would have been slightly greater at 3.7 per cent if supermarket upgrading works in CapitaMall Wangjing, CapitaMall Xizhimen and CapitaMall Xuefu are accounted for.
Business park revenue slipped 9.6 per cent on lower occupancy at the Singapore-Hangzhou Science Technology Park Phase II and Ascendas Innovation Towers. Logistics parks revenue climbed 3.3 per cent on higher occupancy at Kunshan Logistics Park.
As at Dec 31, 2024, retail was CLCT’s largest asset class, accounting for 71.4 per cent of gross rental income, followed by business parks at 25.1 per cent and logistics parks at 3.5 per cent.
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The retail portfolio maintained an occupancy rate of 97.7 per cent, unchanged from Q1 FY2024. It recorded a positive rental reversion of 0.5 per cent, boosted by the upgrading of supermarkets at CapitaMall Xizhimen and CapitaMall Xuefu.
The manager said the real estate investment trust experienced “minimal first-order impact” from the tariffs imposed by the US.
“Our malls primarily serve China’s middle-income consumers, and our retailers have minimal reliance on US imports for their products,” it said.
Gearing stood at 42.6 per cent as at Mar 31, 2025, down from 41.9 per cent as at Dec 31, 2024.
Weighted average lease expiry was 1.7 years by gross rental income and 2.4 years by net lettable area.
Units of CLCT closed 3.8 per cent or S$0.025 higher at S$0.69 on Wednesday.
