CapitaLand India Trust lifts FY 2025 payout on growth

CapitaLand India Trust has recorded a 22% year-on-year increase in its distribution per unit (DPU) for the second half of 2025, driven by contributions from newly completed developments, previous acquisitions, and improved interest income.

According to the trust, the DPU for this period rose to 3.90 Singapore cents, up from 3.20 Singapore cents in the corresponding period the previous year. This growth contributed to a 15% rise in the full-year DPU, which reached 7.87 Singapore cents.

Financially, the trust's performance was bolstered by a significant rise in income available for distribution. For the six months ending 31 December 2025, this figure climbed 33% year-on-year to INR 3,990 million. Over the course of the full year, the trust reported a 23% increase in distributable income, totalling INR 7,833 million, reflecting a robust period of growth and operational expansion.

Income growth

Total property income rose 10% year-on-year in 2H 2025 to INR 9.8 billion. For the full year, total property income increased 12% to INR 19.5 billion.

Net property income grew 17% year-on-year in the second half to INR 7.6 billion. Full-year net property income increased 16% to INR 14.9 billion.

The net property income margin improved year-on-year to 76.4% from 74.0%. The trust also provided a margin figure excluding one-off adjustments. It said that measure improved to 75.4% from 74.8%.

On a Singapore dollar basis, income available for distribution increased 25% year-on-year in 2H 2025 to SGD 59.3 million. For the full year it rose 17% to SGD 118.9 million.

CapitaLand India Trust said the portfolio valuation increased 19% year-on-year on a like-for-like basis to INR 266.4 billion, or SGD 3.8 billion. The trust excluded divestments of CyberVale in Chennai and CyberPearl in Hyderabad from that comparison.

Occupancy and rents

As of 31 December 2025, CapitaLand India Trust reported a committed portfolio occupancy of 91%. The trust also achieved significant rental reversions of 21% over the preceding 12-month period.

Management attributed the growth in distributable income to an improved operating performance, alongside income contributions generated by newly completed developments and earlier acquisitions. Furthermore, earnings were bolstered by higher interest income associated with forward purchases currently under development.

Debt and funding

The trust reported gearing of 39.6% as at 31 December 2025. It said 72.6% of total borrowings were on fixed interest rates and 53% were hedged into Indian rupees.

CapitaLand India Trust said it had debt headroom of SGD 967 million. It also said it diversified funding sources through perpetual securities and moved to onshore more debt in India.

The trust said it issued its first bond in India on 2 January 2026 and Crisil Ratings rated it AAA. It also said it signed two onshore sustainability-linked loans in India totalling INR 21 billion, or around SGD 300 million.

"We are pleased to report strong FY 2025 financial results, which reflect the team's strategic focus and strong execution capabilities. The team's disciplined efforts to strengthen operating margins, optimise capital management, unlock value through strategic divestments and developing a strong growth pipeline have been instrumental in achieving this solid performance in 2025. As we look ahead to 2026, I am confident that our strategies - underpinned by a strong balance sheet, a high-quality portfolio and disciplined execution- will position CLINT well to capture opportunities and deliver sustainable returns for unitholders," said Manohar Khiatani, Chairman, CapitaLand India Trust Management.

Forward purchases

CapitaLand India Trust has highlighted its forward purchase programme as both a key contributor to interest income and a vital pipeline for its continued portfolio expansion. In line with this strategy, the trust entered into a forward purchase agreement in February 2025 for a 1.1 million-sq-ft office project located at Nagawara on Bangalore's Outer Ring Road.

By 31 December 2025, the trust's development pipeline consisted of six forward purchase assets, representing a total of 7.3 million sq ft. Reflecting this increased activity, interest-bearing long-term receivables deployed into these projects rose by 25.3% year-on-year, reaching SGD 381.6 million.

Portfolio changes

CapitaLand India Trust said it completed its maiden data centre development, CapitaLand Data Centre Navi Mumbai Tower 1, in August 2025. The trust said Tower 1 started progressive handover to the hyperscaler tenant from the third quarter of 2025. It also said Tower 2 had been fully leased to the same global hyperscaler.

In December 2025, the trust announced plans to divest 20.2% stakes in three data centres under development to CapitaLand India Data Centre Fund. It put estimated total purchase consideration at INR 7.02 billion, or about SGD 99.73 million, and said it expected completion by the end of February 2026.

It also reported a divestment completed in September 2025. The trust said it sold CyberPearl in Hyderabad and CyberVale in Chennai for INR 11,031 million, or around SGD 161.7 million.

"CLINT's strong performance in FY 2025 reflects the momentum we have been generating across multiple growth engines. We continue to strengthen our portfolio and balance sheet by improving efficiencies, pursuing forward purchases and developments, and recycling capital through strategic divestments. In parallel, we are also actively optimising our capital structure. We remain focused on sustaining this momentum, reinforcing each growth pillar to support steady and resilient growth going forward," said Nagabhushanam.

The trust said it has started redevelopment of the Orion building in International Tech Park Hyderabad into a 1.0 million sq ft building, with target completion in the fourth quarter of 2028. It said development of MTB 7 at International Tech Park Bangalore remained on track for completion in the third quarter of 2027.

As at 31 December 2025, the trust said its completed floor area stood at 21.7 million sq ft. It reported total development potential of 3.7 million sq ft in its IT business parks, and said construction activities for existing projects, including the committed forward purchase pipeline, were progressing as scheduled.