“At the property level, we secured higher NPI. We stabilised financing cost at 3.5% similar to 1Q2024 and with consensus view of interest rates easing, that could result in a positive outcome. We did a $300 million 3.75% bond issue bond issue to replace debt coming due in 3Q2024 and 4Q2024. We maintained a high retention rate and had rental reversions of +9.3% for SIngapore retail, and +15% for Singapore office,” Tan said during the results briefing.
CapitaLand Integrated Commercial Trust (CICT) is in the enviable position of reporting a 2.5% y-o-y growth in distributions per unit (DPU) to 5.43 cents in 1HFY2024 for the six months to end-June. CICT is only the third REIT and property trust to report DPU growth this year. Mapletree Industrial Trust (SGX:ME8U
) recorded a 1.2% y-o-y growth for its 1QFY2025 DPU, for the three months to end-June. CapitaLand India Trust (SGX:CY6U) , a property trust under the Business Trust Act,, reported an 8% y-o-y rise in DPU for 1HFY2024 to 3.64 cents.
Tony Tan, CEO of CICT’s manager says the resilient DPU was due to NPI growth based on rental growth, and lower property costs including utility costs. CQ @ Clarke Quay reopened in April. Additionally, Tan says the manager stabilised financing cost at 3.5% unchanged q-o-q.
