CICT 1Q2024 Business Updates

CICT 1Q2024 Business Updates

CICT 1Q2024 Highlights

One 19th April 2024, CICT (CapitaLand Integrated Commercial Trust) released their 1Q2024 business updates. As usual, since this is only a business update, there are no details on its financial performance.

In 1Q2024, CICT’s Gross Revenue and Net Property Income rose 2.6% to S$398.6M and 6.3% to S$293.7M year-on-year respectively. The increase was attributed to gross rental income growth and lower operating expenses.

Similar to previous business updates, we can see that CICT’s retail assets, office assets and integrated development all performed better year-on-year as compared to the same quarter in 2023.

CICT 1Q2024 Gross Revenue and NPI

Debt

CICT 1Q2024 Debt Maturity Profile

CICT’s aggregate leverage increased slightly by 0.1% (as of 31st December 2023) to 40.0% (as of 31st March 2024).

It is fortunate that there is no further news that the Fed will increase interest rates, otherwise CICT’s aggregate leverage is expected to trend higher. A 1% p.a. increase in interest rate will roughly setback CICT’s Distribution Per Unit (DPU) by 0.35 cents.

76% of CICT’s borrowings are based on fixed interest rate to mitigate against sudden interest rate hikes. If you look at the chart above, CICT has a long debt maturity profile with an Average Maturity of 3.8 years.

Occupancy

CICT 1Q2024 Occupancy

In 1Q2024, CICT’s overall portfolio occupancy dipped slightly by 0.3% to 97.0%. The dip was due to its office portfolio where some of its assets are undergoing AEI works.

CICT 1Q2024 Lease Expiry

Lease expiry is well-spread and thus nothing is of immediate concern.

CICT 1Q2024 Rental Reversion

CICT maintains its positive rental reversion. A positive rental reversion means an increase in rental rates for the REIT, while the converse would be termed negative rental reversion.

Current Dividend Yield

CICT Share Price 23-Apr-2024

Based on CICT’s closing share price of S$1.92 and FY23 full year DPU of 10.75 cents, this translates to a current dividend yield of 5.60%. In my opinion, the current price is still not very attractive. CICT’s dividend yield has always been hovering between 5% to less than 6%.

Summary of CICT 1Q2024 Business Updates

To summarize CICT’s 1Q2024 business updates, the pros are:

  • CICT’s Gross Revenue and Net Property Income rose 2.6% to S$398.6M and 6.3% to S$293.7M year-on-year respectively.
  • CICT’s retail assets, office assets and integrated development all performed better year-on-year as compared to the same quarter in 2023.
  • 76% of CICT’s borrowings are based on fixed interest rate.
  • Lease expiry is well-spread.
  • CICT maintains its positive rental reversion.

The cons are:

  • Aggregate leverage increased slightly by 0.1% to 40.0%.
  • CICT’s overall portfolio occupancy dipped slightly by 0.3% to 97.0%.
  • Low current dividend yield of 5.60%.

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