CapitaLand China Trust (CLCT) reported a distributable income of S$43.2 million for the six months ended Jun 30, 2026, edging down 0.6 per cent year-on-year as the absence of earnings from its divested CapitaMall Yuhuating was largely cushioned by stronger contributions from upgraded malls and lower borrowing costs.

Gross revenue slipped 4.4 per cent to S$152.3 million, while net property income fell 2.5 per cent to S$103.9 million. The real-estate investment trust declared a distribution per unit (DPU) of 2.45 Singapore cents, compared with 2.49 cents a year earlier after adjusting for retention. The payout will be made on Sep 9 to unitholders on record as at Aug 14, translating to a trailing 7.4 per cent distribution yield based on the Jun 30 unit price of S$0.650.

Retail assets, which contribute 70.6 per cent of portfolio gross rental income, lifted same-store revenue 0.8 per cent. Portfolio occupancy improved to 97.3 per cent from 96.9 per cent a year ago, supported by refurbished malls such as CapitaMall Xizhimen, CapitaMall Wangjing and CapitaMall Xuefu. Shopper traffic and tenant sales rose 3.2 per cent and 2.6 per cent, respectively, driven by stronger performances in toys and hobbies, sportswear, IT and food-and-beverage categories.

In the workspace segment, business park occupancy held at 85.1 per cent after 102,000 sq m of renewals and new leases, while logistics-park occupancy climbed to 99.0 per cent, aided by leasing at Chengdu Shuangliu Logistics Park. Rental reversions for logistics space narrowed to minus 1.2 per cent from minus 24.5 per cent in FY 2025.

The divestment of CapitaMall Yuhuating on Oct 31, 2025 trimmed the top line but contributed to a reduction in gearing to 40.4 per cent from 42.1 per cent. Average borrowing cost eased 36 basis points to 3.06 per cent, producing a 16 per cent drop in interest expense; 71 per cent of debt is now on fixed rates and 73 per cent is denominated in renminbi, strengthening the trust’s natural hedge against currency movements.

CLCT is pursuing selective retail acquisitions in China’s Tier 1 and Tier 2 cities and evaluating further asset-enhancement projects to lift yields. It also intends to deepen its focus on business and logistics parks that cater to sectors aligned with China’s policy priorities, while maintaining a diversified funding base and staggered debt maturities to protect balance-sheet flexibility.

Chief executive Gerry Chan said the trust’s diversified portfolio and active asset-management efforts underpinned the half-year performance, citing higher occupancy, resilient tenant sales and financing savings despite macroeconomic headwinds. He noted that the appreciation of the renminbi against the Singapore dollar provided an additional uplift and reaffirmed management’s commitment to disciplined capital management and portfolio rejuvenation to sustain distributions.