CapitaLand Integrated Commercial Trust - UOB Kay Hian 2024-08-14: Stable Occupancies In 1H24; Smooth Execution For AEIs

• CapitaLand Integrated Commercial Trust (CICT, SGX:C38U) reported DPU of 5.43 cents for 1H24 (+2.5% y-o-y), which is slightly above our expectation. See CapitaLand Integrated Commercial Trust's distribution dates.

NPI margin expanded 2.2ppt y-o-y to 73.5%.

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• Net property income for 1H24 increased 5.4% y-o-y due to lower utility expenses and savings from the new property management agreement.

Retail: Resilient performance from suburban malls.

• The retail portfolio achieved positive rent reversion of 9.3% based on the average rent of signed leases in 1H24 (suburban: 9.1%, downtown: 9.5%). Occupancy edges higher by 0.3ppt q-o-q to 99.0% in 2Q24. Tenant retention was healthy at 85.7%.
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• higher outbound travel being exacerbated by the strong Singapore dollar.
• In absolute dollar terms, tenant sales for downtown malls were up 4.3% y-o-y. New brands include SushiSamba at Capital Tower (dining and entertainment), IL Clay Supper Club at Clarke Quay (Italian-Mediterranean restaurant) and Lola's Cafe at Tampines Mall (neighbourhood cafe).

Office: Maintained stable occupancy.

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Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-08-14 SGinvestors.io

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