THE MANAGERChairman & CEO Message

FY 2026 marks a significant milestone for CapitaLand China Trust (CLCT) as we commemorate our 20th anniversary. Since our listing on the Singapore Exchange in 2006, we have navigated China's economic cycles and pursued disciplined growth, with a clear focus on building a high-quality portfolio to deliver income resilience and sustainable long-term returns to Unitholders.

CLCT has evolved from a retail-focused REIT across five cities into a diversified multi-asset platform spanning 11 cities across China, with our total property value growing six-fold from S$0.7 billion to S$4.2 billion, a testament to the disciplined execution of our long-term growth strategy.

Building on 20 Years of Driving Long-term Value

FY 2025 was marked by heightened global trade tensions and continued economic headwinds in China. Against this backdrop, we remained focused on proactive asset management, prudent capital management and disciplined portfolio reconstitution to safeguard CLCT's income resilience. We also positioned CLCT for long-term growth by aligning our strategies and portfolio with China's economic priorities on driving domestic consumption and high-quality, technology-driven growth, while capturing opportunities arising from the development of domestic capital markets.

This year, we made significant progress in refreshing our retail offerings. Through strategically timed AEIs across four retail malls¹, we introduced unique consumer-centric retail concepts that cater to evolving preferences. These initiatives have improved tenant sales and positioned our assets for growth. In addition, we welcomed new business park and logistics park tenants that reinforce our alignment with China's growth sectors. Efforts to attract high-tech and other emerging companies to our business parks have also allowed us to increase our occupancies and outperform market standards.

With constructive domestic capital markets and lower interest rates, we expanded our RMB-denominated debt to 60% at the close of FY 2025, strengthening our natural hedging and enhancing our financial position.

During the year, CLCT marked a defining milestone in its next phase of growth. Together with our sponsor, we strengthened our presence in China's capital markets through the listing of CapitaLand Commercial C-REIT (CLCR), the first internationally sponsored retail C-REIT on the Shanghai Stock Exchange. CLCT remains the only S-REIT offering exposure to China's expanding C-REIT market.

In connection with the listing, CLCT seeded the platform with its mature asset, CapitaMall Yuhuating, unlocking value and strengthening our balance sheet. Since acquiring the mall in 2019, we have executed a disciplined acquire-enhance-divest strategy, including an AEI that reclaimed 8,900 sq m of anchor supermarket space for specialty retail, lifestyle and experiential offerings. The asset was subsequently injected into CLCR at a premium to its valuation, underscoring our disciplined capital recycling approach while reinforcing portfolio resilience.

Concurrently, we subscribed to a strategic 5% stake in CLCR. This forward-looking move establishes a sustainable capital recycling platform to support ongoing portfolio reconstitution, enhance financial flexibility and provide potential upside from China's evolving REIT landscape. CLCR debuted strongly, opening 19.6% above its IPO price of RMB5.718 per unit. Our 5% stake deepens access to domestic capital markets and positions CLCT to benefit from the growth of China's C-REIT sector, supporting long-term portfolio optimisation.

Steadfast Results

For FY 2025, distributable income totalled S$83.9 million, resulting in a distribution per unit of 4.82 Singapore cents and a distribution yield of 6.2%².

Gross Revenue decreased 9.1% year-on-year (YoY) to RMB 1,670.0 million, while Net Property Income (NPI) was 9.4% lower at RMB 1,104.6 million. This was primarily due to the absence of contributions from CapitaMall Yuhuating from 1 April 2025 to 31 December 2025, following its divestment, AEI downtime at four malls¹ as well as softer occupancy and rents at our business parks and weaker retail environment for CapitaMall Xinnan, CapitaMall Grand Canyon and CapitaMall Wangjing. These pressures were partially mitigated by the resilient performance of CapitaMall Nuohemule and Ascendas Xinsu Portfolio alongside improved contributions from our logistics parks.

The softer revenue performance was partially mitigated by a 4.3% YoY reduction in operating expenses across CLCT's portfolio on a same-store basis, reflecting continued operational efficiency. To ensure income stability for Unitholders, we have provided a one-off top-up for 2H 2025 distribution from past divestment gains in the interim to make up for the absence of income from CapitaMall Yuhuating.

Through active leasing and asset management, occupancy remained resilient for our retail, business parks and logistics parks portfolios at 97.2%, 86.7% and 98.1% respectively. Retail malls, which account for 69.3% of our portfolio's Gross Rental Income (GRI), recorded a 2.7% increase in shopper traffic and a 2.1% rise in tenant sales. This was supported by robust demand in key trade sectors such as Toys & Hobbies, Jewellery & Watches, IT & Telecommunications and Food & Beverage (F&B). Government-issued consumption vouchers have stimulated domestic spending. Our retail portfolio recorded a rental reversion of -2.4% in FY 2025, reflecting a strategic shift away from the automobile sector amid evolving electric vehicle (EV) tenant strategies. Excluding the automobile trade category, reversion was contained at -0.6%, underscoring a more diversified and resilient tenant mix.

Business parks, which contribute 27.0% of our GRI, achieved occupancy that outperformed submarket benchmarks. During the year, our business parks welcomed increased commitments from tenants in the engineering as well as culture, sports and entertainment sectors. Rental reversion came in at -8.1% as we adopted a targeted leasing approach to protect asset value and ensure sustainable tenancy in a softening market. We will deepen efforts to attract tenants in key sectors aligned with China's technology-driven growth, positioning our business parks portfolio to capture growth opportunities.

Constituting 3.7% of GRI, our logistics parks maintained a strong occupancy rate of 98.1%, supported by the early renewal of strategic anchor tenants, in line with our strategy to prioritise occupancy across the portfolio. Three of the four properties - Shanghai Fengxian Logistics Park, Kunshan Bacheng Logistics Park and Wuhan Yangluo Logistics Park - were fully leased, supported by sustained demand from e-commerce players and third-party logistics providers. Notably, Shanghai Fengxian logistics park secured a third-party logistics tenant on an eight-year lease, effectively addressing the vacancy challenge the asset faced in 2024.

Enhancing and Unlocking Value for Growth

Our strategy of portfolio rejuvenation through targeted AEIs remains a key driver of value creation and organic growth. In FY 2025, we completed four AEIs, revitalising CapitaMall Xuefu, CapitaMall Xizhimen, CapitaMall Wangjing, and Rock Square with higher-yielding retail concepts designed to meet evolving consumer preferences.

At CapitaMall Xuefu, we upgraded 8,700 square metres (sq m) of supermarket space. Launched in 2Q and 3Q 2025, the refreshed space now houses a leading local supermarket B.U.T. as well as a themed zone centred on animation, comics and gaming, designed to appeal to younger shoppers. Following the AEI, this differentiated concept drove higher footfall, secured full occupancy and lifted total rents by 13.1%.

Elevating shopper experience at CapitaMall Xizhimen, we converted 10,100 sq m of supermarket space to house DT-X, a new retail concept inspired by SKP, one of China's most successful department stores. Opened in 4Q 2025, DT-X has transformed the well-patronised mall into a sophisticated lifestyle destination, uplifting the mall's brand positioning with a high-end concept anchored by the introduction of premium labels, including new-to-market and upscale boutique brands aimed at attracting mid to high-income consumers. CapitaMall Xizhimen saw shopper traffic rise 14% YoY and gross turnover per sq m grow 20% YoY in December 2025 following the launch.

In the same quarter, we revitalised 8,800 sq m of anchor space at CapitaMall Wangjing to feature a new retail concept supermarket, 7Fresh by JD.com, together with more than 20 popular retail and F&B outlets. The initiative achieved 100% leasing and a return on investment of approximately 12.6%, underscoring the effectiveness of our AEI strategy.

For Rock Square, we optimised 2,110 sq m at Basement 1, transforming the area from a cluster of older beauty-focused brands to introduce a high-profile mini-anchor tenant, Decathlon. Completed in 4Q 2025, this repositioning strengthened the mall's appeal as a vibrant lifestyle hub and broadened its shopper base and tenant mix. Following the launch of Decathlon, Rock Square's shopper traffic grew 4.6% YoY, with gross turnover³ per sq m for the AEI area increasing over 40%.

Disciplined Financial Stewardship

CLCT's healthy financial position is anchored in our proactive and prudent capital management approach. Leveraging China's easing interest rate environment, we increased the proportion of RMB-denominated debt from 35% in FY 2024 to 60% in FY 2025, surpassing our earlier target of 50%. This strengthens our natural hedge, mitigates foreign exchange fluctuations and optimises funding costs.

In April 2025, CLCT completed a RMB600 million bond offering due in 2028, at a competitive interest rate of 2.88%. In September 2025, we launched S$150 million of three-year fixed rate subordinated perpetual securities, with a distribution rate of 3.95%. These issuances expanded our funding sources, providing further capacity to drive long-term growth. A portion of our 2026 refinancing obligations has already been completed, leaving only a minimal amount outstanding next year, reinforcing our strong position for prudent and efficient capital management.

Our average cost of debt lowered to 3.32% as at 31 December 2025, from 3.51% a year ago. We maintained a healthy interest coverage ratio⁴ of 2.8 times, and our gearing ratio of 40.7% is well within the regulatory requirements⁵, down from 41.9% as at 31 December 2024. Our well-staggered debt maturity profile has an average term to maturity of 3.5 years. Additionally, 72% of our undistributed distributable income was hedged into SGD, mitigating foreign currency risk and enhancing the stability of Unitholder returns.

Championing Sustainability

Sustainability remains a fundamental pillar of our long-term strategy. In the GRESB Real Estate Assessment, CLCT attained a 5-star rating for the third consecutive year in 2025 and out-performed both the GRESB and peer averages. We also secured LEED Gold certification for a portion of our Ascendas Xinsu Portfolio, bringing the proportion of our green-certified assets to approximately 70% of gross floor area as at 31 December 2025. Reflecting our continued focus on sustainable financing, sustainability-linked loans now account for 50% of total debt, up from 42% a year ago.⁶

Outlook

Looking ahead, China continues to offer compelling opportunities, underpinned by robust domestic demand, extensive supply chains and strong cost competitiveness. In 2025, the country's GDP expanded by 5.0%, while industrial output grew 5.9%.⁷ During the year, policymakers rolled out fiscal and monetary stimulus initiatives, including a reduction in the Loan Prime Rate as well as programmes encouraging large-scale equipment upgrades and consumer goods trade-ins. These measures are expected to progressively bolster business confidence and consumption.

While the direct impact of US tariffs on CLCT's operations remains limited, we will remain vigilant in monitoring geopolitical developments, global trade trends and China's economic policies. We will actively pursue opportunities to expand our presence across diversified asset classes, including retail in tier 1 and 2 cities, seek targeted AEIs to elevate our retail portfolio for existing and new assets, and sustain strong occupancy rates across business parks and logistics parks.

Our dual connection to both the S-REIT and C-REIT markets differentiates CLCT. It provides us with a distinct advantage in sourcing, structuring and executing accretive transactions, while enabling capital recycling into higher-yielding opportunities. At the same time, we will seek strategic investments that strengthen portfolio resilience and drive value creation.

Board Renewal

With effect from 1 November 2025, Mr Tan Tze Wooi relinquished his positions as Non-Executive Non-Independent Director and member of the Executive Committee. Mr Neo Poh Kiat also stepped down as Non-Executive Independent Director, Chairman of the Audit and Risk Committee (ARC) and member of the Nominating and Remuneration Committee. On behalf of the Board, we extend our deepest appreciation for their dedicated service and invaluable contributions.

Succeeding Mr Neo in his roles is Mr Chua Keng Kim, who has served as a Non-Executive Independent Director and member of the ARC since 1 January 2025. As part of our Board rejuvenation efforts, we welcomed Mr Liu Sing Cheong on 1 November 2025 as Non-Executive Independent Director. He was appointed as a member of the ARC on 5 February 2026. Mr Liu brings extensive experience in real estate, leadership and governance, as well as deep knowledge of the China market. Their expertise will add to the Board's bench strength.

We thank our Unitholders, business partners, tenants and staff for their unwavering support. As we mark our 20th anniversary, we remain steadfast building a diversified, resilient and future-ready portfolio, while pursuing strategies that generate sustainable long-term value for our Unitholders.

TAN TEE HOW
Chairman

CHAN KIN LEONG GERRY
Chief Executive Officer

1. In FY 2025, CLCT completed four AEIs at CapitaMall Xizhimen, Rock Square, CapitaMall Wangjing and CapitaMall Xuefu.
2. Based on the closing price of S$0.775 on 31 December 2025.
3. Excluding automobile tenant in the previous area.
4. Please refer to page 5 for the definition of interest coverage ratio.
5. The Monetary Authority of Singapore stipulates a minimum interest coverage ratio of 1.5 times and an aggregate leverage limit of 50% for all REITs.
6. For more details on CLCT's sustainability initiatives, please refer to the "ESG Highlights" section of this report.
7. Source: China National Bureau of Statistics.