CICT 3Q2022 Business Update

CICT 3Q2022 Business Update

CapitaLand Integrated Commercial Trust (CICT) has released their 3Q2022 Business Update.

On the back of new acquisition, Gross Revenue increased 13.7% year on year to S$374.1 million. Net Property Income (NPI) also increased 12.7% year on year to S$273.2 million. As you may have already guessed, the gains were partially offset by rise in utilities expenses.

CICT 3Q2022 Performance

In terms of year to date (YTD) performance, gross revenue increased 8.9% to S$1,061.7 million while Net Property Income (NPI) increased 8.4% to S$775.0 million.

CICT 3Q2022 YTD Performance

Debt

As of 30th September 2022, gearing still stood high at 41.2%. If you are worry about rising interest rates, 80% of CICT’s borrowings are hedged against fixed interest rate.

Nevertheless, if you see the slide below, a 1.0 p.a. increase in interest rate will setback the Distribution Per Unit (DPU) by an estimate of 0.30 cents. This is really not a good thing for dividend investors.

CICT 3Q2022 Debt

Occupancy

Overall portfolio occupancy increased to 95.1%.

CICT 3Q2022 Occupancy

Portfolio Weighted Average Lease Expiry (WALE) stood at 3.8 years. For retail portfolio WALE, I heard that a shorter WALE is better as the manager can increase rent when the lease expires. On the other hand, a longer WALE offers income stability.

CICT 3Q2022 WALE

Current Dividend Yield

Based on FY21 full year DPU of 10.40 cents and current share price of S$1.74, this translate to a current dividend yield of 5.98%.

The current dividend yield is getting attractive as its share price continues its downtrend.

Nobody knows when is the bottom so do your own diligence.

CICT share price 21 Oct 2022

Summary of CICT 3Q2022 Business Update

I am ending off this post with two slides.

The first slide as shown below is on the recovery in Tourism on the back of Singapore’s reopening. Growth in tourist arrival has a positive impact on shopper traffic and tenant sales, indirectly driving higher occupancy.

CICT 3Q2022 Tourist Arrival

The second slide is related to the office rent. Surprisingly, monthly Grade A Office rent is trending higher which benefit CICT’s office segment.

CICT 3Q2022 Passing Rent

With the above two positives in place, I believe CapitaLand Integrated Commercial Trust should continue to perform well.

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