{"id":17259,"date":"2024-06-07T19:00:06","date_gmt":"2024-06-07T11:00:06","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=17259"},"modified":"2026-06-08T19:54:46","modified_gmt":"2026-06-08T11:54:46","slug":"capitaland-integrated-commercial-trust-3","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hans\/capitaland-integrated-commercial-trust-3\/","title":{"rendered":"CapitaLand Integrated Commercial Trust"},"content":{"rendered":"<p><em>Excerpts from UOBKayHian report<\/em><\/p>\n<h2>CapitaLand Integrated Commercial Trust (SGX: C38U)<\/h2>\n<ul>\n<li>Singapore provides resilient growth with\u00a0CapitaLand Integrated Commercial Trust (CICT) retail and office leases registering positive rental reversion of 7.2% and 14.1% respectively in 1Q24.<\/li>\n<li>Retention rate was high at 88.1% for retail and 84.2% for office. CICT has embarked on AEI works for IMM Building in Singapore.<\/li>\n<li>It has secured ECB as the new anchor tenant at Gallileo in Frankfurt, Germany for a period of 10 years. CICT provides a resilient 2024 distribution yield of 5.7%.<\/li>\n<\/ul>\n<p>Maintain BUY. Target price: S$2.34.<\/p>\n<h2>Benefitting from resiliency and growth in Singapore<\/h2>\n<p>CapitaLand Integrated Commercial Trust gross revenue and NPI grew 2.6% and 6.3% yoy respectively in 1Q24. NPI margin improved 2.6ppt yoy to 73.7% primarily due to lower expenses on utilities.<\/p>\n<h2>Retail: Resiliency from suburban malls<\/h2>\n<p>CICT achieved positive rental reversion of 7.2% on an average-to-average basis for retail properties in 1Q24 (suburban: 7.2%, downtown: 7.1%) (2023: 8.5%).<\/p>\n<p>Committed occupancy for retail improved 0.2ppt qoq to 98.7%. Tenant sales psf increased 2.1% (suburban: 3.1%, downtown: 1.7%).<\/p>\n<p>Tenant sales psf saw healthy growth from beauty &amp; health (+7.9% yoy), food &amp; beverage (+4.9% yoy) and jewellery &amp; watches (+4.5% yoy), driven by the pick-up in tourist arrivals.<\/p>\n<h2>Office: Pick-up in rental reversion<\/h2>\n<p>CICT achieved stellar positive rental reversion of 14.1% for office properties in 1Q24. Occupancy for the Singapore office improved 1.0ppt yoy but dipped 0.9ppt qoq to 95.8% due to transitory vacancy at CapitaGreen (discussion with prospective tenants are\u00a0 ongoing).<\/p>\n<p>Major expansions committed in 1Q24 include Mizuho Securities at Asia Square Tower 2 and Qube Research &amp; Technologies at Six Battery road.<\/p>\n<p>The average rent of its Singapore office portfolio rose 2.4% yoy to S$10.63psf per month. Occupancy was stable at 88.6% for the Australia office portfolio.<\/p>\n<h2>Prudent capital management<\/h2>\n<p>Aggregate leverage was stable at 40.0% as of end-Mar 24. Cost of debt inched up slightly by 0.1ppt qoq to 3.5% in 1Q24. Management guided for cost of debt at mid-to-high 3% for 2024.<\/p>\n<h2>Continued recovery in retail rents<\/h2>\n<p>Leasing momentum remains strong in 1Q24 due to resilient consumer spending boosted by the disbursement of CDC vouchers. Demand was<br \/>\ndriven by food &amp; beverage operators and the proliferation of new-to-market brands.<\/p>\n<p>Downtown malls outperformed due to tourism recovery, high-profile concerts, and back-tooffice momentum. CBRE expects retail rents to continue to recover in 2024.<\/p>\n<h2>Valuation\/Recommendation<\/h2>\n<p>Maintain BUY. Our target price of S$2.34 is based on the Dividend Discount Model (cost of equity: 6.75%, terminal growth: 2.2%). Steady recovery in shopper traffic at CICT\u2019s downtown malls driven by a recovery in tourist arrivals and employees returning to offices.<\/p>\n<p>Asset enhancement and redevelopment of existing properties.<\/p>\n<figure id=\"attachment_17260\" aria-describedby=\"caption-attachment-17260\" style=\"width: 1518px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2024\/06\/cict.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-17260 size-full\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2024\/06\/cict.jpg\" alt=\"CapitaLand Integrated Commercial Trust\" width=\"1518\" height=\"456\" \/><\/a><figcaption id=\"caption-attachment-17260\" class=\"wp-caption-text\">CapitaLand Integrated Commercial Trust share price chart<\/figcaption><\/figure>\n<p>You can find the full report\u00a0<em><a class=\"connectButton\" href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2022\/07\/Ascott-Residence-Trust.pdf\" target=\"_blank\" rel=\"noopener\">here<\/a><\/em>\u00a0and the company website\u00a0<em><a class=\"connectButton\" href=\"https:\/\/www.ascottresidencetrust.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here<\/a><\/em><\/p>\n<p>[thrive_leads id=&#8217;15712&#8242;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Excerpts from UOBKayHian report CapitaLand Integrated Commercial Trust (SGX: C38U) Singapore provides resilient growth with\u00a0CapitaLand Integrated Commercial Trust (CICT) retail and office leases registering positive rental reversion of 7.2% and 14.1% respectively in 1Q24. Retention rate was high at 88.1% for retail and 84.2% for office. CICT has embarked on AEI works for IMM Building [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":17261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[3053,3051],"tags":[144,1576,1760,1899,2023,2157,2205],"class_list":["post-17259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reits-dividend-stock-coverage-singapore","category-singapore","tag-reits","tag-stable-reits","tag-capitaland-integrated-commercial-trust","tag-commercial-reits","tag-good-reits","tag-retail-reits","tag-capitaland-integrated-commercial-trust-share-price-chart"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/17259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/comments?post=17259"}],"version-history":[{"count":3,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/17259\/revisions"}],"predecessor-version":[{"id":17264,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/17259\/revisions\/17264"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media\/17261"}],"wp:attachment":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=17259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/categories?post=17259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/tags?post=17259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}