CapitaLand Integrated Commercial Trust (CICT) is Singapore’s largest diversified real estate investment trust (REIT) with a portfolio valuation of S$24.5 billion which includes 21 properties in Singapore, two in Frankfurt, Germany, and three in Sydney, Australia.
In 2024, CICT has continued to assert its position as a significant player both domestically and internationally, consistently demonstrating robust operating metrics with high portfolio occupancy rates and strong rent reversions across its retail and office assets.
To gain a deeper understanding of CICT’s strategic approach and future plans, I had the opportunity to attend a closed-door dialogue session with the CICT management team. This exclusive event provided valuable insights into the REIT market and a clearer view of CICT’s growth strategies moving forward and provided key insights into the resilience of CICT.
Here are seven things I’ve learned at the event.
1. CICT demonstrated strong resilience amid challenging conditions. Despite significant headwinds in the REIT sector over the last few years, such as high interest rates and economic uncertainties, CICT has proven its resilience through strategic asset management and portfolio optimization. In the last financial year, CICT increased its net property income by 5.4% to S$582.4 million, maintaining a robust portfolio committed occupancy rate of 96.8%, with strong rent reversions of 9.3% for its retail portfolio and 15% for its office portfolio year-to-date June 2024.
Source: CapitaLand Integrated Commercial Trust
CICT’s gross revenue also rose by 2.2%, from S$774.8 million to S$792 million. This growth was driven by healthy rent reversions and disciplined cost management. The REIT achieved a 5.8% reduction in operating expenses, mainly through lower utility costs and savings from a new property management agreement.
Source: CapitaLand Integrated Commercial Trust
Thanks to these efforts, CICT’s distributable income increased by 3.7%, reaching S$366.5 million. Additionally, its well-structured debt profile, with an average