CapitaLand Integrated Commercial Trust (CICT) is Singapore’s largest diversified real estate investment trust (REIT), with 21 properties in Singapore; 2 properties in Frankfurt, Germany; and 3 properties in Sydney, Australia. CICT’s total property valuation as of 31 December 2023 stands at S$24.5 billion. I attended CICT’s recent annual general meeting to gain insights into its performance over the past year and its outlook for the retail and office sectors.
Here are 10 things I learned from the 2024 CICT AGM.
1. CICT registered higher year-on-year financial results, with gross revenue growing 8.2% to S$1.6 billion and net property income (NPI) up 7.0% to S$1.1 billion. The increase was mainly driven by full-year contributions from acquisitions, the completion of asset enhancement initiatives (AEIs), and higher growth rental income, such as from Raffles City. The main segment contributors are Suburban Retail, CBD Office, and Downtown Retail.
Source: CapitaLand Integrated Commercial Trust Source: CapitaLand Integrated Commercial Trust
2. Distributable income grew 1.9% year-on-year to S$715.7 million in FY2023, while distribution per unit (DPU) increased 1.6% to 10.75 cents. One thing to note is that a dividend reinvestment plan for CICT’s 2H 2023 distribution was implemented to partially retain capital for funding its AEIs.
3. CICT will embark on 3 AEIs in 2024 in Singapore, Germany, and Australia, namely the IMM Building, Gallileo, and 101 Miller Street respectively. The management emphasized that these AEIs will add value to the respective assets, enhance their competitiveness, and provide opportunities for future revenue growth upon completion.
4. CICT’s overall portfolio occupancy rate increased by 1.5% year-on-year to 97.3% as of 31 December 2023. The Retail portfolio improved to 98.5%, supported by reopening momentum, improving tourist visits and rising local consumption. The Office portfolio achieved an occupancy rate of 96.7% (FY2022: 94.4%). CICT’s retail and office tenant retention
