Gallileo in Frankfurt underwent improvements during the first half (Image: CapitaLand)
CapitaLand Integrated Commercial Trust posted first-half distributable income of S$366.5 million ($277 million), up 3.7 percent year-on-year, as strong leasing countered missing revenue from an under-renovation German property.
SGX-listed CICT’s distribution per unit for the six months to June rose 2.5 percent year-on-year to 5.43 Singapore cents, the trust’s manager said Tuesday in a release. Based on the closing price of S$1.98 per unit on the last trading day of June, the REIT’s annualised distribution yield for the first half is 5.5 percent.
CICT achieved positive rent reversions by signing and renewing leases for over 1 million square feet (92,903 square metres) of space, said Tony Tan, CEO of the manager, which is owned by Temasek-controlled CapitaLand Investment.
“We have also made significant strides in managing the remaining leases slated to expire in 2024, with the majority of them pending signing of agreements,” Tan said.
Occupancy on Track
Gross revenue from CICT properties in the first half grew 2.2 percent year-on-year to S$792 million on higher gross rental income. The result was partly offset by the absence of income from Gallileo, a commercial tower in Frankfurt, which has been undergoing upgrades since February to target a minimum green rating of LEED Gold at a cost of up to €215 million ($235 million).
Tony Tan, chief executive of CICT’s manager
Net property income for the half rose 5.4 percent year-on-year to S$582.4 million, mainly due to lower utility expenses and savings from property management reimbursements under a new property management agreement, the manager said.
The CICT portfolio’s committed occupancy was 96.8 percent at the end of June, with retail, office and integrated development flashing a respective 99, 95.3 and 98.8 percent. The Singapore retail and office portfolios saw tenant retention rates above 80 percent in the first half.
“Our asset enhancement initiatives at IMM Building in Singapore and Gallileo in Germany are progressing well and are expected to complete in 2H 2025,” Tan said. “Including leases under negotiation, phases 1 and 2 of IMM Building’s AEI have achieved a high committed occupancy of 98.7 percent, while Gallileo’s committed occupancy stands at 96.7 percent.”
New and Retained Tenants
Among the CICT tenants who signed new or renewed leases in the second quarter were investment manager Jain Global and derivatives trader Wintermute at CapitaGreen in downtown Singapore and health and beauty distributor Australian Pharmaceutical Industries at 66 Goulburn Street in Sydney.
The trust reported positive feedback from tenants on the newly refreshed lobby at 101 Miller Street in Sydney after the A$9 million ($5.9 million) upgrade was unveiled last month.
“Looking ahead, our focus will remain on proactive portfolio, capital and cost management while staying agile and responsive to evolving market conditions as we actively seek growth opportunities to enhance the quality of our portfolio,” Tan said.
Leave a Reply