TA Research said CapitaLand planned to roll out selective asset enhancement initiatives in 2026.
PETALING JAYA: Steady tenant demand, expected footfall uplift from Visit Malaysia Year 2026 (VM2026) and growing industrial as well as logistics exposure are expected to support Capitaland Malaysia Trust
’s earnings growth.
The group’s performance for the financial year ended Dec 31, 2025 (FY25) was largely in line with expectations.
TA Research said CapitaLand’s realised net profit of RM149.3mil in FY25 is in line with expectations, representing 98% of both its and consensus full-year forecasts.
Net property income grew 9.7% year-on-year (y-o-y) to RM289.4mil, driven by positive rental reversions, rental step-ups and incremental contributions from newly acquired logistics assets (Glenmarie distribution centre, Senai airport city facilities, Synergy logistics hub and Iskandar Puteri facilities).
Together with stable portfolio performance, this lifted realised net profit by 12.6% y-o-y.
“Portfolio fundamentals remained resilient, with malls outside the Klang Valley sustaining occupancy above 99% as at end 2025. Retail rental reversion remained healthy at 12% increase y-o-y for FY25.
“Lease expiry risk remains manageable, with 29% of gross rental income due for renewal in 2026, followed by 27% in 2027 and 44% in 2028 and beyond.
“Notably, 11.6% of FY26 expiries have already been renewed as at the end of the fourth quarter of 2025 (4Q25), supporting earnings visibility,” TA Research said in a report yesterday.
The research house said the retail outlook is still constructive, despite increased competition from new malls coming onstream in the Klang Valley.
TA Research said CapitaLand planned to roll out selective asset enhancement initiatives in 2026, focused on defending asset quality, tenant mix and mall positioning, rather than large-scale, capital expenditure-heavy initiatives.
“Retail rental reversion outlook remains positive, supported by steady tenant demand and expected footfall uplift from VM2026, especially for tourist-centric assets.
“Management is guiding towards low-teens rental reversion for 2026,” TA Research said.
Moreover, industrial/logistics remains a key growth pillar for the group. Following the completion of Synergy Logistics Hub in November 2025, CapitaLand has proposed a forward purchase of five high-spec industrial assets in Iskandar Malaysia, with completion targeted by 1Q28, to build up exposure within the Johor-Singapore Special Economic Zone.
“While the assets are still under construction and currently unleased, management is comfortable with the risk and remains confident of achieving the 7.3% committed gross yield, supported by past leasing experience and active tenant enquiries,” TA Research said.
