What is the difference between investing in Capitaland limited and capitaland mall trust?

Capitaland Limited is a real estate company, while Capitaland Mall Trust is a retail REIT. The latter is obligated to pay out 90% of income in the form of dividends to qualify being called a REIT. And yes, your understanding is correct.

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Capitaland is the largest shareowner of the REIT, and so will earn dividends from its ownership.

Capland is the property developer who buys the land, takes the loan, builds and get the first tenants. Usually after they secure decent occupancy of 90%, they sell it to their REIT to get money back so that they can repay the loan they took to buy the land and construct the mall. This is also known as "capital recycling". The REIT then takes a mortgage loan to pay the parent company. Parent usually holds on to 25% or any amount as major share holder in the REIT to benefit from recurring income from the malls. REIT raises money from retail investors via IPO or rights issue, or bank loans.