CapitaLand Integrated Commercial Trust's 2H FY23 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, distributable income & DPU have improved YoY due to higher rental and higher occupancy.

Shopper Traffic and Tenant Sales

Both tenant sales and shopper traffic have improved YoY in which tenant sales continue to surpass pre-Covid level.

Rental Reversion

Rental reversion is at 8.5% for the retail portfolio and 9% for the office portfolio.

Asset Enhancement Initiative

AEI for IMM is scheduled to start in 1Q 2024 and expected to be completed by 3Q 2025. Additionally, AEI for 101 Miller Street is projected to be completed by 2Q 2024. As for Gallileo, AEI is set to commence in February 2024 and will take a minimum of 18 months to complete.

Related Parties Shareholding

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

Lease Profile

Overall, the lease profile falls within the median range.

Debt Profile

WADM is relatively wrong with a well-spread maturity.

Diversification Profile

Despite its geographical concentration, the portfolio exhibits diversification in terms of sectors, properties and tenants.

Key Financial Metrics

Key financial metrics fall within the median range, with a favorable point of low manager management fees over operating distributable income.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 93.7% from Operation
• 6.3% from Management Fees Paid in Units
• TTM DPU = 98.2% of Distributable Income

Trends

• Flat: NAV per Unit
• Slight Downtrend: DPU from Operation, Committed Occupancy
• Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

• Dividend Yield - Average for 1y & 3y; Above +1SD for 5y
• P/NAV - Average for 1y, 3y & 5y

Author's Opinion

As compared to the previous half-year, gross revenue, NPI and DPU have been improved. Committed occupancy has been improving since its lowest point in 1Q 2023 and remains healthy at 97.3%. For debt, there is 14% of debt requires refinancing in 2024.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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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.