Business park occupancies rose q-o-q but declined y-o-y in 4Q2025. The occupancy of the four logistics assets improved q-o-q and y-o-y in 4Q2025 but rental reversions were a negative 24.5%.
In an update on Apr 14, JP Morgan reduced its end-2026 target price of 78 cents for CapitaLand China Trust to an end-June 2027 target price of 66 cents while retaining a neutral rating.
As JP Morgan sees it, CLCT is navigating a landscape in China where its retail portfolio has stabilised compared to structural headwinds in its business park portfolio and challenges in its logistics portfolio. Its FY2025 data show that retail continues to recover, with tenant sales for FY2025 up 2.1% y-o-y; but 4Q2025 tenant sales rose by 9.4% y-o-y. Meanwhile occupancy cost declined to 17.5% in FY2025 from 23.7% in FY2021, and 18.4% in FY2024. Occupancy cost is the ratio of total expenses ie occupancy costs divided by gross sales.
