CapitaLand Integrated Commercial Trust - DBS Research 2025-02-06: A Bed Of Roses

• CapitaLand Integrated Commercial Trust reported gross revenue and net property income (NPI) of S$1,586mil and S$1,154mil for FY24, up 1.7% and 3.4% y-o-y, respectively, led by maiden contributions from ION Orchard and strong reversionary rents, which offset the loss of income from the 21 Collyer Quay divestment.

FY24 ahead of our expectations, within consensus

• - Read this at SGinvestors.io -
• High occupancy rates across retail (99.3%), office (94.8%), and integrated development (98.9%) were maintained for the quarter, with overall portfolio occupancy stable at 96.7%.
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• Occupancy costs within the retail portfolio improved to a post-pandemic high of 17%, narrowing the gap with pre-pandemic levels (FY19: 18.2%).
• While portfolio retail sales declined by approximately 1% y-o-y, traffic increased by 4% due to stronger tourist footfall in downtown malls (same-store basis), signaling healthy tenant performance.

Our thoughts

Management fees in units to remain at ~50%.

• Read more at SGinvestors.io.

Geraldine WONG NA DBS Group Research | Derek TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-02-06 SGinvestors.io

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