CICT sees 3.7% rise in distributable income for H1 2024

CapitaLand Integrated Commercial Trust (CICT) has reported a distributable income of SGD $366.5 million for the first half of 2024, reflecting a 3.7% increase from the SGD $353.2 million recorded during the same period in 2023. The positive financial results are attributed to the company's proactive portfolio management and prudent capital and cost handling.

The distribution per unit (DPU) for the first half of 2024 increased by 2.5% to 5.43 cents. Based on the closing price of SGD $1.98 per unit on 28 June 2024, the annualised distribution yield for the period stands at 5.5%. CICT unitholders are expected to receive their 1H 2024 DPU on 26 September 2024.

Gross revenue for the first half of 2024 grew by 2.2% year-on-year to SGD $792.0 million, propelled by higher gross rental income. This increase was partially offset by the absence of income from Gallileo, which has been undergoing an asset enhancement initiative since February 2024.

Net property income also rose by 5.4% year-on-year, reaching SGD $582.4 million. This increase was mainly due to lower utility expenses and savings from property management reimbursements under a new property management agreement.

Tony Tan, CEO of CICT Management, commented on the performance by stating, "We delivered stable returns to unitholders, increasing 1H 2024 DPU by 2.5% year-on-year. This is despite a temporary absence of income from Gallileo due to the ongoing AEI and an enlarged unit base from the distribution reinvestment plan in 1Q 2024."

He added, "Leveraging our strong portfolio management capabilities, we achieved positive rent reversions by signing and renewing leases for over one million sq ft of space. 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."

The asset enhancement initiatives at the IMM Building in Singapore and Gallileo in Germany are reported to be progressing well and are expected to be completed in the second half of 2025. Mr Tan noted that, including leases under negotiation, the first and second phases of IMM Building's AEI have achieved a high committed occupancy rate 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 10 July 2024," he said.

Looking ahead, Tan emphasised that CICT will maintain its focus on proactive portfolio, capital, and cost management while remaining agile and responsive to evolving market conditions. The company is actively seeking growth opportunities to enhance the quality of its portfolio.