During a results briefing on Feb 6, Tan Choon Siang, CEO of CICT’s manager, revealed that the total cost to CICT including construction, fees and expenses, and interest cost will be $1.1 billion or $3,600 psf, with a projected yield on cost of about 5%.
Gallileo’s AEI has completed and will start contributing to net property income this year. CICT has announced AEIs of Lot One and Tampines Mall with return on investment (ROI) of around 7% each. Capital Tower will commence $25 million AEI in 3Q2026 to reposition Level 9 into a community space and create a higheryielding F&B space on Level 1.
When asked about potential acquisitions, Tan was non-committal, citing pricing challenges. “We continue to look at our portfolio reconstitution. We have always been quite selective about what we look at. In terms of acquisitions, there are not that many opportunities in the market. For retail, Jewel, which is our sponsor pipeline, might take some time, because the financials need to match our pricing expectation before there can be a transaction. Also, the vendor needs to be willing to sell at some point. On the office front, there are a few office assets that's been out in the market. The challenge is the pricing expectation. We are unlikely to acquire an asset that is doesn't contribute financially or doesn't really help unitholders. If it's not accretive it will be quite challenging,” Tan elaborates.
In a report dated Feb 20, JP Morgan analysts Mervin Song and Terence Khi expect growth opportunities within CICT’s portfolio. “We anticipate potential upside from further redevelopment/AEI opportunities at Junction 8 post-Singapore’s new draft master plan and at Plaza Singapura/Atrium in conjunction with plans to realign Orchard Road that is located in front of the mall. Located next to the Junction 8 mall, there are plans for a decentralised office hub at Bishan Town Centre. This may present an opportunity to enhance the mall ahead of increased foot traffic. The blue sky scenario would be CICT securing additional GFA at Junction 8 and rezoning of two adjacent roads into commercial space. At this stage, it is unclear whether this is a viable option,” the duo suggest in their report.
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Interestingly, there is a potential site adjacent to Junction 8. JLL has indicated that the vacant land next to Junction 8 is earmarked for a major, long-term, mixed-use development as part of the Draft Master Plan 2025 to decentralise office spaces. This "white site" area, expected to integrate with the Bishan Bus Interchange and MRT station, will feature new offices, shops, and community spaces, with development likely occurring over the next 5 to 10 years, JLL says.
CICT’s FY2025 DPU increased 6.4% year on year to 11.58 cents despite an enlarged unit based on a private placement in August last year. This was supported by a strong second half, which provided uplift with a 9.4% year on year growth in DPU to 5.96 cents. Annualised, 2H2026’s DPU will match CapitaLand Mall Trust’s pre-Covid DPU of 11.97 cents in FY2019.
Song and Khi point out that CICT has returned 3.2% this year, outpacing the S-REIT Index by 2.7%. “CICT remains one of our top S-REITs picks and, in our view, the S-REIT that peers are benchmarked against. Our positive view is driven by a three-year DPU CAGR of 5%. This follows 3% pa DPU growth over the past four years despite headwinds from Covid and the fastest Fed hiking cycle in 40 years, a rare feat among S-REITs. Valuation also remains attractive with CICT’s implied cap rate at mid-4%, which compares favourably against recent mall and prime office transactions such as Clementi Mall and Marina Bay Financial Centre (MBFC) Tower 3 at at 4.1% and mid 3%,” the duo indicate.
JP Morgan maintains an overweight rating with a higher price target of $2.75 by end-June 2027 from an earlier forecast of $2.60 as at end-2026, a forecast DPU of 12.2 cents for FY2026, and 12.8 cents in FY2027.
