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Singapore, 6 February 2025 – CapitaLand China Trust (CLCT) reported a net property income (NPI) of RMB1,219.1 million for the financial year 2024 (FY 2024).  CLCT’s stronger retail performance was offset by the absence of contributions¹ from CapitaMall Shuangjing and CapitaMall Qibao, along with lower contributions from its business parks and logistics parks, resulting in a 5.8% year-on-year (y-o-y) decline in NPI.  

On a like-for-like basis for CLCT’s nine retail assets¹, retail NPI increased 1.9% y-o-y in FY 2024. The three malls² that underwent asset enhancement initiatives (AEI) in 2023 demonstrated strong performance, achieving a 13.7% y-o-y growth in NPI and a blended return on investment (ROI) of about 14%, exceeding the cost of funds. The retail sector, the largest asset class in CLCT’s portfolio, accounted for 70.7% of the portfolio’s gross rental income as of 31 December 2024.

On the capital management front, CLCT leveraged lower RMB interest rates to reduce its overall cost of debt, issuing a CNH 400 million bond due in 2027 at 2.9% per annum in October 2024 to replace higher-interest SGD loans.  This increased the proportion of its Renminbi (RMB) denominated debt facilities to 35%³ of its total debt as at 31 December 2024.  CLCT aims to further raise this to approximately 50% of its loan book by the end of 2025.

For FY 2024, CLCT reported a distributable income of S$96.8 million and Distribution Per Unit (DPU) of 5.65 cents on an enlarged unit base.  The distributable income for FY 2024 was impacted by lower performance from business parks and logistics parks, lower realised foreign exchange gain⁴ and foreign currency translation due to a weaker RMB against Singapore Dollar (SGD), partially offset by lower finance costs.  Based on CLCT’s closing price of S$0.730 on 5 February 2025, the distribution yield for FY 2024 was 7.7%. CLCT’s Record Date is 14 February 2025, and Unitholders will receive the 2H 2024 DPU of 2.64 Singapore cents on 27 March 2025.

Portfolio valuation

As at 31 December 2024, CLCT’s portfolio valuation declined 1.7% y-o-y, with capitalisation rates remaining largely unchanged⁷.  Within the retail sector, smaller and weaker assets faced greater downside pressure while business parks and logistics parks were impacted by near-term supply-demand imbalances and a softer market outlook.

Capital management

CLCT continued to maintain a strong balance sheet with a well-staggered debt maturity profile and diversified sources of funding.  As part of its proactive capital management strategy, CLCT secured refinancing for loans due in FY 2025.  As at 31 December 2024, the average term to maturity of its borrowings was 3.4 years.

As at 31 December 2024, CLCT’s cost of debt stood at 3.51% per annum, supported by a healthy interest coverage ratio⁸ of 3.0 times.  CLCT’s gearing stood at 41.9%, well below the regulatory limit of 50%.  To mitigate exposure to interest rate movements and enhance stability, 76% of CLCT’s total debt is on fixed interest rates.

Sustainability initiatives

CLCT remains committed to making a positive environmental and social impact on the communities where it operates.  In the 2024 GRESB Real Estate Assessment, CLCT was awarded a 5-star rating for the second consecutive year and scored an ‘A’ rating for Public Disclosure for the sixth year running.  CLCT also increased its sustainable financing from 31% as at 31 December 2023 to 42% as at 31 December 2024.

During the year, CLCT obtained LEED Gold certification for two retail malls and two business park properties, bringing the proportion of green-certified assets in its portfolio to approximately 60%⁹ (FY 2023: 36%). 

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1. Excluding contributions from CapitaMall Qibao which ceased operations in March 2023 and CapitaMall Shuangjing which was divested in January 2024.
2. The post-AEI malls are CapitaMall Yuhuating, Rock Square and CapitaMall Grand Canyon.
3. Including FX forward contracts, total RMB as % of total debt is approximately 38%.
4. In FY 2023, the foreign exchange gain mainly arose from the repayment of shareholder's loans principal.
5. Business Times, 15 January, China’s regions set bullish 2025 growth goal in guide for nation. The five regions have been defined as Beijing, Shanghai, Guangdong, Zhejiang and Fujian.
6. Colliers Independent Market Research Report, 4Q 2024.
7. Excluding assets with a change in valuation service providers.
8. The ratio is calculated by dividing the trailing 12 months EBITDA over the trailing 12 months’ interest expense (exclude finance lease interest expenses under FRS 116), borrowing-related fees and distributions on hybrid securities (i.e. perpetual securities) in accordance with revised MAS guidelines with effect from 28 November 2024.
9. Refers to CLCT properties managed by CapitaLand Investment (by sq m).}