- CapitaLand Integrated Commercial Trust reported solid 1H25 results. Gross revenue and net property income (NPI) declined slightly by 0.5% and 0.4% y-o-y to S$787.6m and S$579.9m respectively, but this was largely due to the absence of contribution from 21 Collyer Quay as the asset was divested on 11 Nov 2024.
1H25 DPU rose 3.5% y-o-y, slightly above our expectations.
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- Given the decline in finance costs by 8.7% to S$155.0m and higher distribution income from joint ventures, CapitaLand Integrated Commercial Trust's 1H25 DPU rose 3.5% y-o-y to 5.62%. This formed 51.5% of our initial FY25 forecast, which we deem to be slightly ahead of our expectations.
Retail and office portfolio rental reversions moderated to 7.7% and 4.8% respectively.
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- CapitaLand Integrated Commercial Trust expects its retail rental reversions to come in around the mid-single digit to 7.7% levels. Headline tenant sales on a per square foot per month (psf pm) basis jumped 17.9% y-o-y in 1H25, but this was due to the inclusion of ION Orchard which is a high-end mall within CapitaLand Integrated Commercial Trust’s portfolio. On a like-for-like basis, tenant sales psf pm fell 0.2% y-o-y, with downtown malls showing slight growth of 0.3%, but this was offset by the 0.4% dip at its suburban malls.
- For CapitaLand Integrated Commercial Trust’s Singapore office portfolio, rental reversions eased from 5.4% in 1Q25 to 4.8% in 1H25 and are expected to stay around the mid-single digit levels.
Portfolio committed occupancy inched down 0.1 ppt q-o-q to 96.3%.
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