CapitaLand Integrated Commercial Trust - OCBC Investment 2024-04-22: Stable Operational Performance

• CapitaLand Integrated Commercial Trust (SGX:C38U) provided its business update for 1Q24. Gross revenue rose 2.6% y-o-y to S$398.6m, while NPI increased by a stronger magnitude of 6.3% to S$293.7m due to an expansion in its NPI margin by 2.6 ppt y-o-y to 73.7% as a result of lower operating expenses.
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Committed occupancy

• CapitaLand Integrated Commercial Trust’s overall portfolio committed occupancy inched down 0.3 ppt q-o-q to 97.0%. Breaking this down, its retail and integrated development segments achieved higher committed occupancy of 98.7% (+0.2 ppt q-o-q) and 98.9% (+0.4 ppt q-o-q), respectively, but was offset by higher frictional vacancies at its office portfolio (committed occupancy fell 0.9 ppt q-o-q to 95.8%).

Secured 10-year lease with ECB

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• As the asset will be undergoing an asset enhancement initiative that will cost ~EUR180m, the lease will only commence from 2H25.

Stronger rental reversions expected

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-04-22 SGinvestors.io

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