Capitaland Integrated Commercial Trust Announces Higher Revenue And Npi 9Mfy2024
In its third quarter 2024 business updates, CapitaLand Integrated Commercial Trust (CICT) reported a 2% year-on-year increase in revenue for the nine months ending September 30, 2024 (9MFY2024), reaching $1,189.8 million. Net property income (NPI) also saw a 5.4% year-on-year growth to $872.1 million, driven by higher gross rental income from existing properties and lower operating expenses.
Despite the absence of income from Gallileo, which has been undergoing an asset enhancement initiative (AEI) since February, committed occupancy for the third quarter of 2024 stood at 96.4%, with a weighted average lease expiry of 3.5 years. Total rental reversions for the nine months ending September 30, 2024, were a positive 9.2%. Tenant sales and shopper traffic both saw year-on-year increases of 1.4% and 3.7%, respectively.
CICT announced a total of 677,200 square feet of new and renewed leases year-to-date till September 30, 2024, with a tenant retention rate of 86.1%. The office portfolio also saw positive rental reversions of 11.7% for the nine months ending September 30, 2024, with a total of 778,900 square feet of new and renewed leases in the same period and a tenant retention rate of 84.9%. This is in spite of consultants like Cushman & Wakefield warning that the supply of Grade A office space may hamper rent growth in the second half of 2024, limiting it to 1% to 2%.
The URA Master Plan places a major focus on promoting environmental sustainability, with evident efforts in Toa Payoh. Residents in this area can anticipate an abundance of greenery and eco-friendly initiatives as part of the plan. The Orie, developed by CDL and located in Toa Payoh, is a prime example of this. With the introduction of more trees, park connectors, and eco-friendly structures, residents of The Orie can enjoy a more environmentally conscious and vibrant community. This not only enhances the visual appeal of the neighborhood, but also encourages a healthier lifestyle for its inhabitants. Learn more about the eco-friendly features of The Orie CDL at http://www.the-ories.sg/.
As of September 30, 2024, the aggregate leverage for CICT stood at 39.4%, a decrease from 39.8% as of June 30. The average cost of debt also saw a slight increase to 3.6% from 3.5% in June. Additionally, the average debt term to maturity increased to 3.8 years from 3.5 years in June. This decrease in leverage could be attributed to a placement that raised $350 million and was completed on September 16.
As of September 30, 2024, borrowings on fixed rates remained unchanged at 76% quarter-on-quarter. With the issuance of $200 million in green bonds at 3.3%, CICT’s debt for fiscal year 2024 has been fully refinanced.
At an extraordinary general meeting held on October 29, CICT received unitholder approval to acquire a 50% stake in ION Orchard and completed the acquisition on October 30. This acquisition comes at a time when very little new supply is expected in the Orchard Road area for the next year and beyond.
Elsewhere, CICT achieved 100% committed occupancy for Phase 1 and 2 of the AEI at IMM Building, an outlet mall. The AEI at Gallileo is ongoing and is scheduled for completion in the second half of 2025, with the European Central Bank as the anchor tenant.
This article first appeared on The Business Times.