CapitaLand Integrated Commercial Trust - DBS Research 2023-08-02: Onward As One

• CapitaLand Integrated Commercial Trust (SGX:C38U)'s 1H2023 results was relatively stable with office and integrated development delivering strong performance, offset by higher interest cost, in line with our estimates, with its 1H23 DPU +2% y-o-y to 5.30 cents, in line with our estimates, on the back of higher revenue (+13% y-o-y) and NPI (+10% y-o-y) but offset by higher interest cost.
• - Read this at SGinvestors.io -
• Key operation highlights
  1. Portfolio occupancy inched up marginally by 0.5ppt q-o-q to 96.7% for all segments, with office showing the highest occupancy increase of 0.6ppt q-o-q to 95.4%;
  2. - Read this at SGinvestors.io -
  3. tenant sales +6% y-o-y, mainly led by downtown malls (+10% y-o-y).
• Key operational developments:
  1. AEI at Clarke Quay is on track to be completed by late 2H2023, while new tenants have been secured during the quarter;
  2. 66 Goulburn St saw committed occupancy increase to 95.9% from 87.1% in Mar 23 following the new fitted out suites,
  3. Gallileo will undergo AEI after Commerzbank vacates in Jan 24. Expect an AEI period of at least 18 months. CapitaLand Integrated Commercial Trust is currently in very advanced talks with prospective tenants from financial services to take up most of the space, and one could expect a potential upside in rents.

Key highlights from the briefing:

• Read more at SGinvestors.io.

Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-08-02 SGinvestors.io

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