CapitaLand Integrated Commercial Trust - CGS-CIMB Research 2024-02-06: Resilient Portfolio Performance

• 2H23 DPU +1.6% to 5.45 cents. FY23 DPU also improved 1.6% y-o-y to 10.75 cents. CapitaLand Integrated Commercial Trust also announced a distribution reinvestment plan (DRP) applicable to its 2H23 distribution.

2H23 results update highlights

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• Portfolio valuation +1.2% to S$24.5bn, as higher Singapore asset values offset the weaker property values in Germany (-10% y-o-y) and Australia (-9.6% y-o-y).
• Gearing improved 0.9% pt q-o-q to 39.9%.
• CapitaLand Integrated Commercial Trust indicated that it would be open to recycle assets at above book level and that a gearing level of 37-38% would be more optimal.

Positive rental reversions driven more by downtown retail malls

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• Overall retail tenant sales and shopper traffic rose by 1.8% and 8.6% y-o-y, respectively, over the same period, resulting in an improvement in occupancy cost to 16.3%.
• CapitaLand Integrated Commercial Trust remains optimistic on its retail segment and anticipates retail rents to continue rising in the mid-single digit for FY24F.

AEI for IMM

• Read more at SGinvestors.io.

LOCK Mun Yee CGS-CIMB Research | Natalie ONG CGS-CIMB Research | https://www.cgs-cimb.com 2024-02-06 SGinvestors.io

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