CapitaLand China Trust (SGX:AU8U) saw its stock price plummet 3.07% in Thursday trading following the release of disappointing third-quarter results. The real estate investment trust, which focuses on retail, business park, and logistics properties in China, reported a significant decline in both revenue and net property income for the quarter ended September 30, 2025.

According to the company's filing with the Singapore Exchange, CapitaLand China Trust's net property income dropped 8.5% year-over-year to 273.5 million yuan (approximately 52 million Singapore dollars) from 298.9 million yuan in the same period last year. Gross revenue also fell by 8% to 416.6 million yuan, down from 452.8 million yuan a year earlier. The trust attributed this decline to lower rents, reduced occupancy rates, and the absence of contribution from CapitaMall Yuhating, which was recently divested to CapitaLand Commercial C-REIT.

Despite the overall decline, the trust's logistics segment showed some positive momentum, with a 13% rise in revenue helped by stronger take-up at Shanghai Fengxian Logistics Park. However, this was not enough to offset the weaker performance in the retail and business park segments. The trust's management reported that they are undertaking asset-enhancement works at several properties, including CapitaMall Wangjing, CapitaMall Xuefu, and CapitaMall Xizhimen, in an effort to improve returns. Additionally, the company has taken steps to strengthen its balance sheet by issuing new perpetual securities and refinancing some of its debt. As the market digests these mixed signals, investors will be closely watching CapitaLand China Trust's performance in the coming quarters for signs of a potential turnaround.