CapitaLand China Trust reports 3.5% drop in Q1 NPI to 282.4 million yuan

[SINGAPORE] CapitaLand China Trust (CLCT) reported on Thursday (Apr 23) a 3.5 per cent decrease in net property income (NPI) to 282.4 million yuan (S$52.8 million) for its first quarter ended Mar 31, 2026, from 292.5 million yuan in the year-ago period.The decline in NPI was primarily due to the absence of contribution from CapitaMall Yuhuating, which was divested in 2025, the manager said.This was partially offset by a 3.7 per cent year-on-year cost reduction on a same-store basis.Gross revenue for the quarter fell 5.3 per cent to 416.4 million yuan from 439.7 million yuan a year earlier.Retail revenue declined 7.2 per cent year on year, largely due to the divestment of CapitaMall Yuhuating. Excluding the mall’s contribution from Q1 the year before, retail revenue saw a slight decline of 0.5 per cent.Navigate Asia ina new global orderGet the insights delivered to your inbox.The manager attributed the fall to lower occupancy and rents at CapitaMall Xinnan, CapitaMall Grand Canyon and CapitaMall Aidemengdun, though the drop was partially offset by improvements at CapitaMall Wangjing and CapitaMall Xuefu following asset enhancement initiatives.For business and logistics parks, revenue remained flat on the year. Improved occupancy at Shanghai Fengxian Logistics Park was offset by lower rents at the Wuhan Yangluo and Chengdu Shuangliu logistics parks.Operational highlights for the retail portfolio included a 3.3 per cent year-on-year increase in shopper traffic and a 5.5 per cent rise in tenant sales. SEE ALSOCapitaLand China Trust H2 DPU down 11.7% at S$0.0233 on lower retail, business park revenueCommitted occupancy for the retail portfolio was at 97 per cent. At the end of the previous quarter, committed occupancy was at 97.2 per cent. Business park occupancy for Q1 was at 86 per cent, and logistics park occupancy was at 99 per cent. The manager pointed out that cost of debt fell by about 40 basis points year on year to 3.1 per cent in Q1 2026. In its business outlook, the manager noted that China’s gross domestic product growth of 5 per cent in Q1 topped market expectations and signalled an improvement in economic momentum.Regarding China’s recently stricter e-commerce taxes and its impact on physical retail, the manager said: “This shift is anticipated to transform the sector from a traffic-driven, low-price model to a value-driven, compliant ecosystem, potentially fostering a fairer market environment for sellers operating through offline channels in the long term.”It also noted that there is an expectation for China to keep its official rates steady in 2026, with limited impact from the Middle East conflict. Still, “second-order effects may still emerge over time and management continues to closely monitor developments and potential implications”, it said.Units of CLCT closed S$0.01 or 1.4 per cent lower at S$0.68 on Wednesday.Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.