The manager of CapitaLand Integrated Commercial Trust (CICT) C38U has reported a distribution per unit (DPU) of 5.3 cents for the 1HFY2023 ended June 30, 1.5% higher than the DPU of 5.22 cents in the same period the year before.
Distributable income rose by 1.7% y-o-y to $353.2 million due to acquisitions and the completed asset enhancement initiative (AEI) at Raffles City Singapore and offset by higher finance costs from the additional borrowings for its acquisitions and increases in interest rates.
Gross revenue rose by 12.7% y-o-y to $774.8 million mainly due to contributions from the acquisitions of CapitaSky and CICT’s Australia portfolio, higher rental income from most of CICT’s Singapore properties, as well as the completion of the AEI at Raffles City Singapore.
During the six-month period, net property income (NPI) rose by 10.1% y-o-y to $552.3 million for the same reasons.
As at June 30, CICT’s committed portfolio occupancy rose by 0.5 percentage points q-o-q to 96.7%. The committed occupancies for its retail, office and integrated development portfolios were 98.7%, 95.4% and 97.8%, respectively.
CICT’s portfolio weighted average lease expiry (WALE) for its retail portfolio stood at 2.2 years based on gross rental income (GRI). Its office portfolio WALE stood at 3.6 years also based on GRI. Its integrated development WALE stood at 5.3 years.
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Aggregate leverage stood at 40.4% as at June 30, down 0.5 percentage points q-o-q. As at the same period, 78% of the REIT’s borrowings are on a fixed interest rate.
Cash and cash equivalents as at June 30 stood at $254.2 million.
“Against a backdrop of global uncertainties, CICT continued to deliver stable financial returns to unitholders underpinned by a resilient portfolio performance and proactive asset management. We achieved higher committed occupancy rates and positive rent reversions for the office and retail assets,” says Tony Tan, CEO of the manager.
“Looking ahead, we will focus on strengthening our portfolio and optimising the potential of our overseas properties through proactive management. CQ @ Clarke Quay is expected to complete the phased AEI works by late 2HFY2023 and will contribute to CICT’s performance in FY2024 when the tenants progressively commence operations,” he adds.
In addition, Tan believes that the REIT is “well-positioned” to implement its portfolio and asset management strategies effectively thanks to its “healthy balance sheet and robust capital structure”.
“We will continue to exercise prudence in our capital management and evaluate any organic growth and inorganic opportunities with financial discipline,” he says.
The phased AEI at CQ @ Clarke Quay is scheduled to be completed in the later part of the 2HFY2023.
Unitholders will receive their DPU on Sept 15.
As at 9.20am, units in CICT are trading at $2.04.
