CapitaLand Integrated Commercial Trust Sees Uplift in Income
CapitaLand Integrated Commercial Trust (CICT) has announced a positive uptick in its financial performance, with its second-half distributable income growing by 2.1% year-on-year to S$362.5 million. This increase contributed to a full-year payout of S$715.7 million, marking a 1.9% rise.
The Singapore-listed REIT also reported a 1.6% increase in distribution per unit for 2023, leading to a total return of 6.3%, as confirmed by the trust’s manager on Tuesday.
Faced with challenging market conditions, CICT adopted a conservative strategy that emphasized asset portfolio management, cost control, and disciplined capital management. “This strategy has yielded positive results,” stated Teo Swee Lian, chairman of the trust’s manager, indicating resilience and effective management amid external pressures.
CICT’s gross revenue for 2023 surged by 8.2% to S$1.56 billion, powered by substantial contributions from recent acquisitions and improved performance from existing properties.
However, property operating expenses saw an 11.4% increase to S$444 million, attributed to the impact of acquisitions made in 2022 and rising costs for utilities, maintenance, and marketing. Despite these higher expenses, net property income grew by 7%.
The portfolio’s occupancy rate improved to 97.3%, with 1.7 million square feet of new leases and renewals signed throughout the year. In Singapore alone, tenant retention rates for retail and office leases were notably high.
“The limited new supply of retail and office spaces in Singapore will continue to drive demand for our properties,” mentioned Tony Tan, CEO of the manager.
CICT is also in the advanced stages of completing a significant overhaul of its CQ @ Clarke Quay property, with the project set to introduce new dining and retail concepts within a conserved heritage setting.
Additionally, several other properties across CICT’s portfolio are slated for upgrades, including IMM mall in Singapore and the Gallileo skyscraper in Germany, with the aim to elevate their market positioning and sustainability credentials.
This combination of strategic asset enhancements and prudent management practices underscores CICT’s ongoing commitment to delivering value to its shareholders and reinforcing its market position despite broader economic uncertainties.
