CICT reports 2H21 net property income jumped 62 percent, beating Daiwa forecasts

apitaLand Integrated Commercial Trust (CICT) entered a deal in December 2021 to acquire 50 percent of Greenwood Plaza in Sydney, Australia. Credit: CapitaLandCapitaLand Integrated Commercial Trust (CICT) entered a deal in December 2021 to acquire 50 percent of Greenwood Plaza in Sydney, Australia. Credit: CapitaLand

CapitaLand Integrated Commercial Trust (CICT) reported Friday its second half net property income rose 61.6 percent on-year to S$478.92 million, boosted by enlarged portfolio due to the merger, the contribution from all of Raffles City Singapore and lower rental waivers to tenants during the period. 

In October 2020, CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust merged to create CapitaLand Integrated Commercial Trust. Under the deal, all units of CCT were acquired by CICT. Post-merger, Raffles City Singapore became a wholly owned subsidiary of CICT, instead of a joint venture.

Gross revenue for the six months ended 31 December increased 54.5 percent on-year to S$659.39 million, the REIT reported in a filing to SGX. 

The distribution per unit (DPU) came in at 5.22 Singapore cents, down 8.9 percent from 5.73 Singapore cents in the year-ago period, CICT said. 

In December, the trust announced it would issue around 127.55 million new units in a private placement; the number of units in issue increased to 6.61 billion at end-December 2021 from 6.47 billion at end-December 2020, the filing said.

The amount available for distribution to unitholders increased 62.7 percent on-year to S$349.36 million, the filing said.

Daiwa had forecast net property income of S$432.9 million on gross revenue of S$613 million, with a DPU of 5.22 Singapore cents.

At end-December, CICT reported committed portfolio occupancy at 93.9 percent, with retail assets at 96.8 percent, office assets at 91.5 percent and integrated developments at 96 percent. 

Tenants’ sales for the full year rose 12.2 percent on-year in 2021, the REIT said.

For the full year, the REIT reported net property income of S$951.08 million, up 85.5 percent on-year, on gross revenue of S$1.31 billion, up 75.1 percent on-year. The full-year DPU came in at 10.40 Singapore cent, up 19.7 percent from 8.69 Singapore cents in the year-ago period, the filing said. 

Read more about CICT’s financial results and about the properties in its portfolio.