On 1st August 2023, CapitaLand Integrated Commercial Trust (CICT) announced their 1H2023 Financial Results. The REIT has a market capitalisation of S$13.6 billion as at 31st July 2023. As of 31st December 2022, CICT’s portfolio comprises of 21 properties in Singapore, two properties in Frankfurt, Germany, and three properties in Sydney, Australia.
Riding on the recovery of tourism and local consumption, shopper traffic and tenant sales for CICT’s malls are up year-on-year.
How has CICT performed so far? Let us take a look in detail at its 1H2023 Financial Results and do a summary at the end of this post.
CICT 1H2023 Financial Results
In 1H2023, CICT’s Gross Revenue and Net Property Income increased by 12.7% and 10.1% year-on-year, reaching S$774.8 million and S$552.3 million, respectively.
The improvements were attributed to contributions from the acquisitions of CapitaSky and the Australia portfolio, as well as the completion of the asset
enhancement initiative (AEI) at Raffles City Singapore. Higher rental income from a majority of CICT’s Singapore properties also helped to boost the revenue.
A good news for dividend investors is that CICT’s 1H2023 distribution per unit (DPU) was 5.30 cents, up 1.5% y-o-y.
| 1H2023 (S$’000) | 1H2022 (S$’000) | Change | |
| Gross Revenue | 774,777 | 687,599 | 12.7% |
| Net Property Income | 552,337 | 501,620 | 10.1% |
| Amount Available for Distribution | 358,983 | 351,200 | 2.27% |
| Distributable Income | 353,245 | 347,296 | 1.71% |
| Distribution Per Unit (“DPU”) (cents) | 5.30 | 5.22 | 1.53% |
Debt
As of 30th June 2023, CICT’s aggregate leverage stood at slightly high at 40.4%.
78% of CICT’s borrowings are hedged at fixed interest rate to mitigate against sudden interest rate hikes.
CICT has a long debt maturity profile with average term to maturity standing at 4.3 years. CICT has the necessary facilities in place to refinance the remaining outstanding debt of S$130.0 million due in November 2023.
Occupancy
CICT’s overall portfolio occupancy improved from 96.2% to 96.7% since 31st March 2023. The committed occupancies for its retail, office and integrated development portfolios were 98.7%, 95.4% and 97.8%, respectively.
The office and retail leases of the Singapore portfolio registered positive rent reversions of 9.6% and 6.9% for 1H2023 respectively. A positive rent reversion indicate an increase in rental rates during renewal of leases.
Weighted Average Lease Expiry (WALE) is stable at 3.6 years.
Current Dividend Yield
Based on the current share price of S$1.93 and FY22 full year distribution of 10.58 cents, this translate to a current dividend yield of 5.48%.
Summary of CICT 1H2023 Financial Results
We have come to the summary section of CICT’s 1H2023 financial results.
Based on 1H2023 financial results, the pros are:
- Gross Revenue and Net Property Income increased by 12.7% and 10.1% year-on-year.
- 1H2023 distribution per unit (DPU) was 5.30 cents, up 1.5% y-o-y.
- 78% of CICT’s borrowings are hedged at fixed interest rate.
- CICT has the necessary facilities in place to refinance the remaining outstanding debt of S$130.0 million due in November 2023.
- Overall portfolio occupancy improved to 96.7%.
- Office and retail leases of the Singapore portfolio registered positive rent reversions of 9.6% and 6.9% for 1H2023 respectively.
- Weighted Average Lease Expiry (WALE) is stable at 3.6 years.
- Current dividend yield of 5.48%.
The considerations are:
- CICT’s aggregate leverage is slightly high at 40.4%.