CapitaLand India Trust - Higher DPU from improved operating performance

REITs

By Goh Lay Peng, CFA • 03 Feb 2026

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CapitaLand India Trust achieved 22% year-on-year DPU growth in 2H FY25 to 3.90 cents. Full year FY2025 DPU grew 15% year-on-year to 7.87 cents.

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Strong growth in distribution per unit (DPU)

Distribution per unit grew strongly by 22% year-on-year to 3.90 cents in 2H FY25.

For the full year FY2025, DPU grew 15% year-on-year to 7.87 cents, translating to a distribution yield of 6.5% based on the closing price of S$1.22 as at 31 December 2025.

Positive financial performance driven by growth strategy

CapitaLand India Trust reported 2% year-on-year increase in total property income to S$145.1 million in 2H25. Contributions from newly completed developments, improved operating performance and strategic portfolio reconstitution drove the set of positive results.

Newly acquired new properties, MTB 6 in ITPB, CyberVale Free Trade Warehousing Zone and newly completed Navi Mumbai data centre Tower 1 have started to contribute to the property income.

Net property income grew by 9% year-on-year to S$111.3 million in 2H25.

The forward purchase programme is a key growth engine by providing consistent interest income and a visible pipeline of quality assets. As at 31 December 2025, the Trust has six forward purchase assets under developing. Interest bearing long-term receivables grew to S$381.6 million, making significant contribution to its interest income.

Portfolio performance remains resilient

With proactive asset management, weighted average lease expiry (WALE) was relatively stable at 3.4 years at 31 December 2025, from 3.5 years as at 31 December 2024.

Committed portfolio occupancy was also relatively stable at 91% as at 31 December 2025, from 92.0% as at 31 December 2024. Management remains focused on increasing the occupancy to strengthen the portfolio’s earnings base.

The Trust achieved rental reversions of 21% over the last 12 months, led by assets in Hyderabad ad Bangalore.

The valuations as at 31 December 2025 grew by 6.5% year-on-year to S$3.8 billion. The increase reflects the progress at the data centres development. In 3Q 2025, the Trust has started progressive handover of the newly completed data centre – CapitaLand Data Centre Navi Mumbai Tower 1.

Updates on progress of data centre portfolio

In August 2025, the Trust completed its first data centre – Navi Mumbai data centre Tower 1. The Trust has started to handover to the hyperscaler client. Tower 2 , fully leased to the same hyperscaler client, is under development and expected to be completed by December 2026.

A key development of this segment is the divestment of 20.2% stakes in the three data centres under development to CapitaLand India Data Centre Fund for S$99.73 million. The transaction is expected to be completed in 1Q 2026.

The data centre portfolio is now fully funded from construction loan, partial divestment and contribution from joint venture partners.

CapitaLand India Trust's data centre portfolio under development

Healthy balance sheet

Gearing was stable at 39.6% as at 31 December 2025, from 40.9% as at 30 September 2025. CapitaLand India Trust has ample debt headroom of S$967 million, assuming gearing ratio at 50%. CapitaLand India Trust maintains adequate liquidity with S$516.4 million of available undrawn committed credit facility.

Cost of debt declined slightly to 5.6% as at 31 December 2025, from 5.8% as at 30 September 2025.

In order to diversify the funding sources and reduce cost of debt, the Trust has issued the first perpetual securities in July 2025, a $100 million subordinated perpetual bond at 4.4% p.a. In January 2026, the Trust has issued its first onshore bond in India.

The Trust plans to increase the portion of onshore borrowing in order to take advantage of the lower borrowing cost and to leverage on the tax efficiency.

Maintain BUY and target price at S$1.36

Currently, CapitaLand India Trust is trading at S$1.27, implying FY25 distribution yield of 6.2%. Reflecting the investors’ confidence in its growth prospects, CapitaLand India Trust trades at a price-to-book valuation of 0.92x, above its historical average of 0.85x.

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