NEW DELHI: CapitaLand India Trust (CLINT) has successfully raised ₹915 crore through its inaugural onshore bond issuance in India, as announced by CEO Gauri Shankar Nagabhushanam. This initiative aims to achieve a 3.8% increase in distribution per unit (DPU), which will help mitigate currency volatility and enhance tax efficiencies.
Currently, only 16% of CLINT’s loan book is situated in India, with plans to expand this to 40-50%, equivalent to between S$800 million to S$1 billion, over the next two and a half to three years as existing offshore tenors mature.
The company has signed a forward purchase agreement for a 1.1 million sq ft office space in North Bengaluru with local developer Maya, expected to be completed in 2028. Furthermore, a significant redevelopment project is in progress in Hyderabad, where over one million sq ft is being constructed after demolishing an older facility.
CLINT’s data center portfolio continues to thrive, with Building 1 and Towers 1 and 2 already pre-committed to a global hyperscaler. Nagabhushanam highlighted that the recent tax exemptions for data centers have given India “definitive ammunition” to compete effectively with regional rivals like Vietnam and Malaysia. Although data centers offer development yields of about 10.5%, which is roughly 100 basis points lower than Grade-A office spaces, they are prioritized for their superior capital appreciation and long-term institutional demand.
The trust has completed a partial sale of a 20.2% stake in its data center portfolio for approximately USD 99 million, achieving a valuation 14% above the book value.
Despite some sub-markets like Hinjewadi in Pune facing infrastructure challenges in 2025, the company remains optimistic about improved performance following the anticipated completion of metro connectivity.
For 2026, CLINT plans to adopt a dual strategy of selective acquisitions and divestments to maintain a portfolio mix of one-third non-office assets.
CLINT reported a 12% increase in top-line revenue, with a 16% growth in net income. Distributable income surged by 22%, while portfolio valuation in INR rose by 19%, mainly fueled by strong leasing velocity and rental reversions averaging 21% for the year.
The company recorded a gearing level of 39.6%, aligning with averages for REITs listed in Singapore, while the cost of debt stood at 5.6%. Additionally, operational efficiency improved, with operating margins rising from 74% to approximately 75-76% during this period.
Occupancy rates remained stable at 91% across its income-generating 22 million sq ft space. Despite challenges from currency depreciation, the net asset value (NAV) showed stability, remaining consistent with 2024 levels. For Indian investors, the combination of a 6.5% dividend yield in Singapore dollars and currency appreciation led to an effective total return of approximately 34-35 percentage points for 2025.
