CICT posts 2.5% rise in first-half DPU to 5.43 cents
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CapitaLand Integrated Commercial Trust secured about 1.1 million sq ft of new leases and renewals in the first half year.
ST PHOTO: KUA CHEE SIONG
Hykel Quek
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SINGAPORE - CapitaLand Integrated Commercial Trust reported a distribution per unit (DPU) of 5.43 cents for the first half of the year, up 2.5 per cent from 5.3 cents in the corresponding period the year before.
It also announced on Aug 13 distributable income of $366.5 million, up 3.7 per cent from $353.2 million in the first half of 2023 The distribution will be paid out on Sept 26, after the record date on Aug 21.
However, the total return attributable to unit holders fell in the first half to $364.9 million, compared with $387.8 million in the year-ago period.
Revenue increased 2.2 per cent to about $792 million, from $774.8 million in the first half of financial year 2023. This was due to higher gross rental income, the manager of the trust said.
Finance costs for the first half rose 10.2 per cent to $169.7 million, from $154 million in the year-ago period.
Net property income was up 5.4 per cent to $582.4 million in the first half of financial year 2024, from $552.3 million in the year-ago period. This rise was attributed to lower utility expenses and savings from property management reimbursements under the new property management agreement.
This comes even as income from Gallileo – a Grade A commercial building located in Frankfurt’s Central Business District – was temporarily absent due to an asset enhancement initiative (AEI), and an enlarged unit base from the distribution reinvestment plan in the first quarter of 2024.
Chief executive of the manager Tony Tan added: “Our AEIs at IMM Building in Singapore and Gallileo in Germany are progressing well and are expected to complete in the second half of 2025.
“Including leases under negotiation, phases one and two of IMM Building’s AEI have achieved a high committed occupancy of 98.7 per cent, while Gallileo’s committed occupancy stands at 96.7 per cent.”
The trust’s portfolio occupancy was 96.8 per cent, with a weighted average lease expiry of 3.6 years. Its interest coverage ratio was three times, with an aggregate leverage of 39.8 per cent.
Based on the average rent of signed leases in the first half of financial year 2024, the trust’s Singapore retail and office portfolios recorded positive rent reversions of 9.3 per cent and 15 per cent, respectively.
In the first half, CICT secured about 1.1 million sq ft of new leases and renewals, split evenly across its retail and office portfolios.
Units of CICT were trading unchanged at $2.09 as at 9.29am on Aug 13, after its results release. THE BUSINESS TIMES
