Raffles City

CICT FY2021 Financial Results

Raffles City

On 28th January 2022, CapitaLand Integrated Commercial Trust (CICT) presented their FY2021 Financial Results.

CICT achieved a distributable income of S$338.8 million for the six months from 1 July 2021
to 31 December 2021 (2H 2021), compared to the distributable income of S$259.7 million for
the same period a year ago (2H 2020).

The increase was largely driven by contribution from CapitaLand Commercial Trust (CCT) assets and 100% contribution from Raffles City Singapore after the merger with CCT in 2H 2020.

In 2H 2021, CICT achieved a DPU of 5.22 cents whereby an advanced distribution of 4.85 cents for the period from 1 Jul to 15 Dec 2021 was already paid on 28 Jan 2022. The record date for the remaining DPU of 0.37 cents will be paid on 15th March 2022.

CapitaLand Integrated Commercial Trust FY2021 Financial Results

For the financial year ended 31 December 2021 (FY 2021), gross revenue and net property
income was S$1,305.1 million and S$951.1 million respectively, which resulted in a
distributable income of S$674.7 million.

CapitaLand Integrated Commercial Trust delivered a Distribution Per Unit (“DPU”) of 10.40
cents in FY2021 against the backdrop of an ever-evolving pandemic and a challenging
business environment.

FY2021
(S$’000)
FY2020
(S$’000)
Change
Gross Revenue 1,305,051 745,209 75.1%
Net Property Income 951,082 512,740 85.5%
Income available for distribution 687,416 375,645 83.0%
Distribution to Unitholders 674,713 369,384 82.7%
Distribution Per Unit (“DPU”) (cents) 10.40 8.69 19.7%

Occupancy

Overall portfolio committed occupancy stood at 93.9%. This is made up of retail portfolio occupancy of 96.8% and office portfolio occupancy of 91.5%.

Weight Average Lease Expiry (WALE) stood at 3.2 years.

As you can see below, Clarke Quay occupancy was exceptionally low. The occupancy was due to leases affected by government-stipulated restrictions on trading hours and sales of alcohol at nightlife venues like clubs, karaoke joints and bars without food licenses.

CICT Retail Portfolio Occupancy 31 Dec 2021

From the occupancy rate of each office property, you can see that CICT’s office portfolio does not seem to be performing well.

Six Battery Road have secured an anchor tenant in January 2022, which will boost building occupancy to 89.3%.

CICT Office Portfolio Occupancy 31 Dec 2021

Debt

As of 31st December 2021, gearing ratio stood at 37.2%. This was a reduction as compared to 40.9% in 30th September 2021.

83% of borrowings are hedge on fixed interest rate to mitigate against foreign exchange fluctuations.

CICT Debt 31 Dec 2021

Current Dividend Yield

Based on closing price of S$1.94 and FY21 full year dividend of 10.40 cents, this translate to a current dividend yield of 5.36%.

CICT Share Price 31 Jan 2022

Summary of CapitaLand Integrated Commercial Trust FY2021 Financial Results

Let me summarize the pro and cons from of CICT’s FY2021 financial results.

  • Distribution Per Unit (“DPU”) grew Y-o-Y to 10.40 cents.
  • Low overall portfolio occupancy of 93.9% dragged down by office portfolio.
  • Healthy gearing at 37.2%.
  • Attractive current dividend yield of 5.36%.
  • Adopted Omnichannel strategy which proved successful with other case studies of The Hour Glass and Convenience Retail Asia.
  • Clarke Quay asset under retail portfolio remains a drag because of government-stipulated restrictions on trading hours and sales of alcohol at nightlife venues like clubs, karaoke joints and bars without food licenses.

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