CapitaLand Integrated Commercial Trust's (CICT) distributions per unit (DPU) rose by 2.5% y-o-y in 1HFY2024 for the six months to end-June to 5.43 cents. This is marginally lower than the DPU in 2H2023 of 5.45 cents. CICT's pre-Covid DPU for the full year of 2019 was 11.97 cents. Despite this, CICT was one of only three S-REITs that managed y-o-y DPU growth.
Distributable income rose by 3.7% y-o-y to $366.5 million. Gross revenue grew 2.2% y-o-y to $792.0 million due to higher gross rental income, partially offset by the absence of income from Gallileo which has been undergoing an asset enhancement initiative (AEI) since February 2024. Net property income for 1H2024 rose 5.4% y-o-y to $582.4 million, mainly due to lower utility expenses and savings from property management reimbursements under the new property management agreement.
AEI at IMM Building in Singapore and Gallileo in Germany are progressing well and are expected to complete in 2H2025. Including leases under negotiation, phases 1 and 2 of IMM Building’s AEI have achieved a high committed occupancy of 98.7%, while Gallileo’s committed occupancy stands at 96.7%. Tenants have given positive feedback on our newly enhanced lobby at 101 Miller Street in Australia, which was unveiled on July 10.
As at end-June 2024, CICT's portfolio achieved committed occupancy of 96.8%, with retail, office and integrated development portfolios recording 99.0%, 95.3% and 98.8% respectively. The Singapore retail and office portfolios achieved positive rent reversions of 9.3% and 15.0% respectively, based on the average rent of signed leases in 1H2024. Leasing momentum was underpinned by CICT's manager's proactive leasing approach and active tenant engagement efforts. During this period, CICT secured approximately 1.1 million sq ft of new leases and renewals, evenly split across the retail and office portfolios. Its Singapore retail and office portfolios garnered high tenant retention rates of above 80% in 1H2024.
As at June 30, CICT’s average cost of debt remained at 3.5%, with 76% of its total borrowings on fixed interest rates. The Trust’s debt maturity profile is well-staggered across various tenures, with an average term-to-maturity of 3.5 years. Aggregate leverage was marginally lower q-o-q at 39.8%, with interest coverage ratio down a tad to 3x.
CICT will hold a results briefing at 9.30 this morning.
