CapitaLand Integrated Commercial Trust - RHB Invest 2024-04-19: Resilient Operational Quarter; BUY

• CapitaLand Integrated Commercial Trust (SGX:C38U) posted a resilient 1Q24 operational performance.
• Office double-digit rent reversions slightly surprised on the upside and management upped its rent reversion expectations for office and retail portfolio to high-single digits (from mid-single digits) on the back of healthy demand. Overall portfolio occupancy is expected to remain stable.
• - Read this at SGinvestors.io -

1Q24 NPI rose 6.3% y-o-y

• CapitaLand Integrated Commercial Trust's 1Q24 NPI rose 6.3% y-o-y, backed by 2.6% revenue growth, with the office segment showing the highest y-o-y NPI growth. NPI margin for the quarter rose ~2.5ppts to 74%, which management attributed to lower utility costs, cost savings from a new property management agreement, and other expenses.
• - Read this at SGinvestors.io -
• CapitaLand Integrated Commercial Trust’s distribution reinvestment plan (2H23) saw a healthy take-up, with its sponsor lending support, resulting in 59.8m new units being issued – this should bring gearing to manageable levels (~39%).
• Asset divestments are therefore likely to be more opportunistic, with management still looking to monetise some assets by the end of the year.

European Central Bank (ECB) to anchor Gallileo

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-04-19 SGinvestors.io

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