CapitaLand Integrated Commercial Trust's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, distributable income, and DPU have all improved YoY, driven by better performance across the existing portfolio.

Shopper Traffic and Tenant Sales

Shopper traffic has increased YoY, while tenant sales per square foot have remained consistent.

Rental Reversion

Rental reversion for 1H stands at 9.3% for the retail portfolio and 15% for the office portfolio.

Asset Enhancement Initiative

AEI for IMM Phase 1 and Phase 2 is progressing, with new tenants expected to begin operations in 4Q. The Gallileo AEI is ongoing, with handover to the tenant planned in phases from 2H 2025. AEI work for 101 Miller Street was completed on 10 July, and CQ @ Clarke Quay officially relaunched on 26 April.

Related Parties Shareholding

REIT sponsor and directors of the REIT manager hold a relatively low proportion of shares.

Lease Profile

The overall lease profile is within the median range.

Debt Profile

WADM is relatively long, with a well-distributed maturity profile.

Diversification Profile

Despite geographical concentration, the portfolio is diversified across sectors, properties, and tenants.

Key Financial Metrics

The operating distributable income margin is high, and management fees are low relative to operating distributable income.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 92.3% from Operation
• 6.2% from Management Fees Paid in Units
• 1.5% being Retained

Trends (Up to 10 Years)

• Flat: NAV per Unit
• Slight Downtrend: Committed Occupancy
• Downtrend: DPU from Operation, Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield - Below -1SD for 1y; Average for 3, 5y and 10 years
• P/NAV - Above +2SD for 1y; Average for 3, 5y and 10 years

Author's Opinion

Compared to the previous half-year, gross revenue remains similar, but NPI has improved due to lower property operating expenses. Distributable income and DPU have remained stable. For debt, 13% requires refinancing in the 2H of this year.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.