Following CapitaLand Integrated Commercial Trust (which was the first of the trio of CapitaLand REITs and business trusts I have investments in to release its business update for 3Q & 9M FY2025 last Tuesday, and you can read about it here), the next CapitaLand REIT and business trust in my investment portfolio to do so was CapitaLand India Trust (SGX: CY6U), or CLINT, last Friday (31 October) morning.

For readers unfamiliar with the business trust, CLINT focuses on investing in business space properties across India — including completed assets, land acquisitions, and ongoing developments intended for such use. Its current portfolio consists of 10 IT business parks, 3 industrial facilities, 1 logistics park, and 4 data centre developments situated in key Indian cities such as Bangalore, Chennai, Hyderabad, Pune, and Mumbai, with a total portfolio value of approximately S$3.7 billion.

Since the release of its 2Q and 1H FY2025 results in late July 2025 (you can read my review of it here), one of the most notable development surrounding the business trust was its first divestment (since its listing in 2007) of 2 assets, namely CyberVale (in Chennai) and CyberPearl (in Hyderabad) to an unrelated 3rd party for INR11,031 million (or approximately S$161.7 million) – which is around a 3% premium to their independent valuations as of 31 December 2024. The transaction was completed in end-September 2025, with the proceeds earmarked for debt repayment to strengthen the balance sheet, as well as deployment into higher-yielding projects to further expand CLINT’s portfolio.

In this post, you’ll find my review of CLINT’s latest business update for 3Q and 9M FY2025 in terms of its financial figures, as well as its portfolio occupancy and debt profile:

Financial Figures (3Q FY2024 vs. 3Q FY2025, and 9M FY2024 vs. 9M FY2025)

3Q FY2024 vs. 3Q FY2025:

3Q FY20243Q FY2025% Variance
Total Property Income (S$’mil)$68.8m$76.0m+10.5%
Total Property Expenses (S$’mil)$15.8m$17.4m+10.1%
Net Property Income (S$’mil)$53.0m$58.6m+10.6%

Overall, it was a strong set of results reported by CLINT, with its total property income and net property income up by about 10% in Singapore Dollar-terms (in Indian-rupee terms, they both improved by 18%).

This can be attributed to higher income from existing properties, along with income contributions from acquisitions (Building Q2) and completed developments (MTB 6, CyberVale FTWZ, and Navi Mumbai DC Tower 1).

9M FY2024 vs. 9M FY2025:

9M FY20249M FY2025% Variance
Total Property Income (S$’mil)$204.9m$225.2m+9.9%
Total Property Expenses (S$’mil)$48.3m$53.1m+9.9%
Net Property Income (S$’mil)$156.6m$172.1m+9.9%

For the first 9 months of FY2025, CLINT’s total property income and net property income also saw a close to 10% improvement compared to a year ago (in Indian-rupee terms, they were up by about 16%), to which I consider to be a steady growth.

The improvements can be attributed to higher income from existing properties, as well as income contributions from acquisitions (aVance II, Pune and Building Q2), and completed developments (MTB 6, CyberVale FTWZ, and Navi Mumbai DC Tower 1).

Portfolio Occupancy Profile (2Q FY2025 vs. 3Q FY2025)

Most of CLINT’s properties have an occupancy rate of at least 90% over the quarters (and this resulted in its overall portfolio occupancy rate being maintained as such), which is good to note.

Has the business trust managed to maintain this trend? Let us find out in the table below, where you’ll find a comparison of CLINT’s portfolio occupancy profile reported for the current quarter under review (i.e., 3Q FY2025 ended 30 September), against that reported in the previous quarter (i.e., 2Q FY2025 ended 30 June):

2Q FY20253Q FY2025
Portfolio Occupancy (%)92.0%91.0%
Portfolio WALE (years)3.7 years3.6 years

CLINT’s overall portfolio occupancy slid slightly – by 1.0 percentage point (pp) to 91.0%. This can be attributed to a slight dip in the occupancy rate of ITPH (from 99% in 2Q FY2025 to 98% in 3Q FY2025), as well as in Building Q1 (from 92% in 2Q FY2025 to 91% in 3Q FY2025).

As far as the occupancy rates of individual properties are concerned, except for aVance II Pune (where its occupancy, inclusive of options and ROFR, is at 74%), the other properties have an occupancy rate of at least 91%, to which I consider to be a strong one.

Lease expiries are also well-spread out ahead – with just 1% of leases due for renewal in 4Q FY2025, an average of about 18% of leases due for renewal each year over the next 3 years (between FY2026 and FY2028), and a huge bulk of leases (at 45%) only due for lease renewal in FY2029 or later.

Debt Profile (2Q FY2025 vs. 3Q FY2025)

Before I review CLINT’s debt profile, there’s one thing I’d like to share, and that is, its average cost of debt – where I understand some investors may be concerned about its ‘higher-than-usual’ (compared to the other REITs listed on the Singapore Exchange) level of around 5+% to 6+% – it is actually on par with the benchmark borrowing rates in India (you can check out the interest rate movements in the country on Trading Economics here).

Since the business trust’s income is denominated in Indian Rupees, borrowing in the same currency helps to create a natural hedge and reduces the impact of currency movements.

With that, let us now have a look at CLINT’s debt profile reported for the current quarter under review (i.e., 3Q FY2025 ended 30 September), compared against that reported in the previous quarter 3 months ago (i.e., 2Q FY2025 ended 30 June) in the table below:

2Q FY20253Q FY2025
Aggregate Leverage (%)42.3%40.1%
Interest Coverage Ratio (times)2.5x2.6x
Average Cost of Debt (%)5.9%5.8%
Average Term to Debt Maturity (years)2.5 years2.5 years
% of Borrowings Hedged at Fixed Rates (%)77.2%77.2%

CLINT’s debt profile saw some improvements from the previous quarter – with its aggregate leverage improving by 2.2pp to 40.1% (as part of the net proceeds from the divestments of CyberPearl and CyberVale were used to repay debt), and its average cost of debt inching down further (for information, its average cost of debt has gradually improved since 2Q FY2023, when it was at 6.3%, down to 5.8% in the current quarter under review).

As far as the business trust’s debt maturity profile goes, its very well-spaced out over the years – in the final quarter of FY2025, it has about 10.1% of borrowings due for refinancing, and about 18.0% of borrowings due for refinancing each year over the next 5 years (between FY2026 and FY2030).

Closing Thoughts

Overall, I consider CLINT’s latest ‘report card’ to be a resilient one – with its financial performance (both for the 3rd quarter as well as for the first 9 months) recording a 10% year-on-year growth in Singapore-dollar terms, and its debt profile improving as well (with its aggregate leverage down to 40.1%, and its average cost of debt coming down further to 5.8% – for the latter, it has been on a downward trajectory since 2Q FY2023, and that is indeed a positive).

If there’s one slight negative to note, it will be the slight 1.0pp dip in its overall portfolio occupancy to 91.0%. However, this is not a concern to me, as all but one of its properties have an occupancy rate of at least 91%, to which I consider to be very strong.

Last but not least, in case you’re wondering, as the business trust pays out a distribution on a half-yearly basis, there are no payouts declared for the current quarter under review.

With that, I have come to the end of my review of CLINT’s latest business update for the 3rd quarter, as well as for the first 9 months of FY2025. As much as I hope you have found the contents presented in this post useful, but do take note that all the opinions expressed within are purely mine which I’m sharing for educational purposes only. They do not represent any buy or sell calls for the business trust’s units. You should always do your own due diligence before making any investment decisions.

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Disclaimer: At the time of writing, I am a unitholder of CapitaLand India Trust.

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