CapitaLand China Trust (CLCT) announced a 6.1% y-o-y decline in revenue to $439.7 million in 1QFY2025 for the three months to March 31. Net property income (NPI) fell by 6.6% y-o-y to $292.5 million.

Retail revenue (excluding supermarket upgrading) declined by 2.7% y-o-y, due to lower rents at CapitaMall Xinnan. Business park revenue declined by 9.6% y-o-y largely due to lower occupancy at Singapore-Hangzhou Science Technology Park Phase II and Ascendas Innovation Towers. However, logistics parks revenue increased by 3.3% y-o-y due to an increase in occupancy at Kunshan Bacheng Logistics Park.

The decline in NPI due to drop in gross revenue, partially offset by savings in operating expenses of 5.0% y-o-y for the overall portfolio.

The retail portfolio achieved positive rental reversion of 0.5%, boosted by upgrading of supermarkets at CapitaMall Xizhimen and CapitaMall Xuefu. Excluding CapitaMall Xinnan and the supermarket leases signed (for CapitaMall Xizhimen and CapitaMall Xuefu), 1QFY2025 retail reversion is -1%, similar to 2024.

The occupancy of business parks remained stable with at 83.7% despite an oversupply, compared with 87.6% in 4QFY2024. The logistics parks increased occupancy to 95.7% because Shanghai Fengxian Logistics Park, which was previously not occupied in the first three quarters of 2024, secured an anchor tenant in December 2024, achieving 100% occupancy. This represents a vast improvement from the 67.6% occupancy in 1QFY2024.

On the capital management front, CLCT increased its RMB-denominated debt to 41% of total debt with the issuance of a 2.88% RMB600 million bond due in April 2028.

Gearing continued to inch up, to 42.6% as at March 31 compared with 41.9% as at Dec 31, 2024. Average cost of debt was unchanged at 3.51% and interest coverage ratio remained unchanged q-o-q at 3 times. Average time to maturity rose to 3.9 months in 1QFY2025, compared to 3.4 months in 4QFY2024.

Separately, CLCT has announced the potential divestment of CapitaMall Yuhuating to CapitaLand Commercial C-REIT subject to unitholders approval in an EGM.

CLCT's share price closed at 69 cents on April 23.

CapLand China T tumbles 2.9% at 11:24 am, Apr 24th.