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CICT delivers resilient performance with distributable revenue reaching S$366.5 million in the first half of 2024, up 3.7% y-o-y

Irishu
CICT delivers resilient performance with distributable revenue reaching S6.5 million in the first half of 2024, up 3.7% y-o-y

Distribution per unit increased 2.5% to 5.43 cents

Singapore – August 13, 2024 —

CapitaLand Integrated Commercial Trust (CICT) has announced distributable income of S$366.5 million for the six months ending 30 June 2024 (1H 2024). This is a 3.7% year-on-year (yoy) increase compared to S$353.2 million in 1H 2023. The resilient financial performance underscores CICT’s proactive portfolio management as well as prudent capital and cost management.

CICT’s 1H 2024 distribution per unit (DPU) increased by 2.5% to 5.43 cents. Based on the closing price of S$1.98 per unit on the last trading day of June, 28 June 2024, CICT’s annual distribution yield for 1H 2024 is 5.5%. With a record date of Wednesday, 21 August 2024, CICT unitholders can expect to receive their 1H 2024 DPUs on Thursday, 26 September 2024.

1H 2024 gross income increased by 2.2% y-o-y to S$792.0 million due to higher gross rental income, partially offset by the absence of income from Gallileo, which has been under asset development initiative (AEI) since February 2024. Net property income in 1H 2024 increased by 5.4% y-o-y to S$582.4 million, primarily due to lower utilities expenses and savings from property management reimbursements under the new property management agreement.1

Mr Tony Tan, CEO of CapitaLand Integrated Commercial Trust Management Limited (CICT manager), said: “We have delivered stable returns to unitholders and increased 1H 2024 DPU by 2.5% y-o-y. This was despite the temporary absence of revenue from Gallileo due to the ongoing AEI and expanded unit base from the distribution reinvestment plan in 1Q 2024. Leveraging our strong portfolio management capabilities, we have achieved positive rental returns by signing and renewing leases for over one million sq ft of space. We have also made significant strides in managing the remaining leases scheduled to expire in 2024, the majority of which are awaiting agreement signing.”

“Our asset development initiatives at IMM Building in Singapore and Gallileo in Germany are progressing well and are expected to be completed in H2 2025. Including negotiated leases, Phases 1 and 2 of AEI of IMM Building have achieved a high committed occupancy rate of 98.7%, while Gallileo has a committed occupancy rate of 96.7%. Tenants have provided positive feedback on our newly enhanced lobby at 101 Miller Street in Australia, which was unveiled on July 10, 2024. Looking ahead, we will continue to focus on proactive portfolio, capital and cost management while actively seeking growth opportunities to enhance the quality of our portfolio, while remaining agile and responsive to evolving market conditions,” Mr Tan added.

Mr Tony Tan, CEO of CICTML

Phases 1 and 2 of the level 1 AEI in the IMM Building are underway. A new food court on level 3 Makan Street (pictured), targeted to open in Q4 2024, will complete the post-AEI offerings.

Asset development work completed in the ground floor lobby of 101 Miller Street

­Summary of CICT results

Notes

1. The following amounts are retained for general corporate and working capital purposes:
– S$4.2 million in the first half of 2024 comprised of S$4.0 million received from CapitaLand China Trust (CLCT) and S$0.2 million received from Sentral REIT.
– The S$5.7 million received in the first half of 2023 comprised S$4.5 million received from CLCT and S$1.2 million received from Sentral REIT.
– Of the S$12.7 million for the 2023 financial year, S$9.5 million was raised from CLCT and S$3.2 million from Sentral REIT.
– Of the S$10.6 million for financial year 2022, S$7.9 million was raised from CLCT and S$2.7 million from Sentral REIT.

Proactive portfolio management

Despite macroeconomic uncertainties, CICT’s portfolio recorded healthy operating metrics in H1 2024. As of June 30, 2024, its portfolio achieved a high committed occupancy rate of 96.8%, while its retail, office and integrated development portfolios recorded 99.0%, 95.3% and 98.8% respectively. The Singapore retail and office portfolios achieved positive rental returns of 9.3% and 15.0%, respectively, based on the average rent of leases signed in H1 2024.

Leasing momentum for CICT remained strong in H1 2024, supported by a proactive leasing approach and active tenant engagement efforts. During this period, CICT secured new leases and renewals of approximately 1.1 million sq ft, evenly distributed across its retail and office portfolios. The Singapore retail and office portfolios achieved high tenant retention rates of over 80% in H1 2024.

In H1 2024, CICT’s retail portfolio saw new store openings, including those from the Food & Beverages, Supermarket, Hobbies and Home & Living sectors. Additionally, several new-to-market and portfolio concepts and brands made their debuts at CICT’s properties, including a world-renowned lifestyle destination Sushi Samba Award-winning Italian-Mediterranean restaurant in Capital Tower IL Clay Dinner Club At CQ @ Clarke Quay, run by famous Italian Pizzaiolo Ciro Sorrentino; and popular neighbourhood cafe Lola’s CafeOpening a new duplex store in Tampines Shopping Centre.

CICT’s office portfolio has attracted new tenants, including those from the Financial Services, Food & Beverages and Real Estate & Property Services businesses. Tenants signing new or renewed leases in Q2 2024 include Jain Global (Singapore) Pte. Ltd. and Wintermute Asia Pte. Ltd. at CapitaGreen, China-Base Resource Singapore Pte. Ltd. at Raffles City Tower in Singapore, and Australian Pharmaceutical Industries Pty Ltd (Wesfarmers Health) at 66 Goulburn Street in Australia.

Prudent and agile capital management

CICT maintained a healthy balance sheet with a stable adjusted net asset value per unit of S$2.07 as at 30 June 2024. The Foundation continues to adopt a prudent and agile capital management strategy by ensuring diversification of funding sources to provide greater financial flexibility.

As of June 30, 2024, CICT’s average cost of debt remained at 3.5%, with 76% of its total borrowings at fixed rates. The Trust’s debt maturity profile is spread across multiple maturities, with an average term to maturity of 3.5 years.
On 10 July 2024, CICT, through CMT MTN Pte. Ltd., issued S$300 million of 10-year fixed-rate notes at 3.75% per annum under the US$3.0 billion Euro-Medium Term Note Programme to partially or fully finance or refinance Eligible Green Projects undertaken by the Group in accordance with CICT’s Green Finance Framework2. Approximately 80% of the debt due in H2 2024 has been refinanced or is currently in the credit documentation phase beyond June 2024.

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1. Please see: Circular dated March 22, 2023 For more detailed information.
2. View details of Eligible Green Projects and CICT Green Finance Framework on our website. https://www.cict.com.sg/pdf/CICT_Green_Finance_Framework_June_2024.pdf

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