CapitaLand China Trust (CLCT) posted a distributable income of S$83.9 million for the year ended 31 Dec 2025, down 13.3% year-on-year, as weaker retail and business-park takings and a softer renminbi offset gains from its logistics assets and lower finance costs.

Gross revenue slipped 11.1% to S$303.7 million, while distribution per unit (DPU) fell to 4.82 Singapore cents from 5.65 cents a year earlier. The trust will pay a second-half DPU of 2.33 cents on 27 Mar 2026 to unitholders on record as of 13 Feb 2026; the payout includes a one-off 0.33-cent top-up funded by past divestment gains to compensate for income foregone after the mid-year sale of CapitaMall Yuhuating.

By segment, logistics-park revenue rose 5.0% YoY, cushioning lower contributions from retail malls and business parks, which were affected by asset-enhancement downtime, softer rents at several malls—including CapitaMall Xinnan, Grand Canyon and Wangjing—and occupancy pressure at Ascendas Innovation Towers and the Singapore-Hangzhou Science Technology Park Phase II. Portfolio net property income fell 9.4% to RMB1.10 billion, though operating expenses declined 4.3% on a same-store basis, reflecting cost controls.

Challenges stemmed mainly from the absence of CapitaMall Yuhuating’s earnings post-divestment, currency headwinds and near-term supply imbalances in business and logistics parks. Portfolio valuation edged 0.8% lower to RMB23.0 billion.

During the year CLCT divested CapitaMall Yuhuating at a premium to valuation and seeded CapitaLand Commercial C-REIT (CLCR), creating a long-term capital-recycling platform. Debt costs eased to 3.32% from 3.51%, and the trust increased its renminbi-denominated borrowings to 60% after refinancing Singapore-dollar loans with offshore CNH facilities, surpassing its 50% target. Gearing stood at 40.7% with an interest-coverage ratio of 2.8 times.

Chairman Tan Tee How said the diversified, multi-asset portfolio positions CLCT to benefit from China’s policies supporting consumption and technology-led growth. He noted that the strategic stake in CLCR enables the trust to unlock value in mature assets and redeploy capital into higher-yielding opportunities.

Chief Executive Gerry Chan added that occupancy across retail, business and logistics parks improved sequentially, aided by active leasing and asset-enhancement initiatives at four malls. He stated that management will continue to scout for accretive acquisitions, supported by the newly established C-REIT platform, while evaluating additional recycling options to sustain distributions.

Looking ahead, CLCT intends to build a more resilient portfolio aligned with China’s economic priorities, target growth sectors and maintain disciplined capital management, with 68% of debt fixed and an average maturity of 3.5 years.