CapitaLand Integrated Commercial Trust 1H 2025 Results: Higher DPU, Robust Portfolio Performance, Asset Enhancements, and Positive Rent Reversions in Singapore, Germany, and Australia 5 6 13 14 32

CapitaLand Integrated Commercial Trust (CICT) 1H 2025 Financial Results Analysis

CapitaLand Integrated Commercial Trust (CICT) has released its financial results for the first half of 2025. This report provides a comprehensive analysis of CICT’s performance, highlighting key financial metrics, portfolio updates, capital management, and outlook based solely on the disclosed information.

Key Financial Metrics and Performance Figures

Gross Revenue: S\$787.6 million, a marginal increase of 0.5% year-over-year (YoY) and 1.4% YoY on a like-for-like (LFL) basis (excluding the impact of divestments) [[5]], [[13]].
Net Property Income (NPI): S\$579.9 million, up 0.4% YoY and 1.7% LFL YoY [[5]], [[13]].
Distributable Income: S\$411.9 million, an increase of 12.4% YoY [[5]], [[14]].
Distribution Per Unit (DPU): 5.62 cents for 1H 2025, up 3.5% YoY [[5]], [[14]].
Aggregate Leverage: 37.9%, down 0.6 percentage points from end-2024 [[5]], [[16]].
Average Cost of Debt: 3.4%, down 0.2 percentage points YoY [[5]], [[16]].
Interest Coverage Ratio: 3.3x [[16]].
Portfolio Occupancy: 96.3% as at 30 June 2025 [[6]], [[19]].

Year-over-Year and Quarter-over-Quarter Comparisons

Gross Revenue and NPI: Both metrics saw marginal YoY increases. Notably, on a like-for-like basis which excludes 21 Collyer Quay (divested in November 2024), revenue and NPI rose by 1.4% and 1.7% respectively, indicating underlying portfolio resilience [[5]], [[13]].
Distributable Income and DPU: Distributable income grew by 12.4% YoY, while DPU rose by 3.5%. The increase in distributable income outpaced DPU growth due to an enlarged unit base [[14]].
Portfolio Occupancy: Remained stable quarter-on-quarter (QoQ), with a slight increase by 0.1 percentage points [[6]].
Shopper Traffic: Up 23.8% YoY, partly due to the inclusion of ION Orchard. Excluding ION Orchard, shopper traffic increased by a still-healthy 3.4% YoY [[6]].
Tenant Sales Per Square Foot: Up 17.9% YoY, but excluding ION Orchard, there was a slight decline of 0.2% YoY [[6]], [[26]].

Historical Performance

Both distributable income and DPU have shown a consistent upward trend from 2021 to 2025. Distributable income rose from S\$335.9 million (1H 2021) to S\$411.9 million (1H 2025), while DPU increased from 5.18 cents (1H 2021) to 5.62 cents (1H 2025) [[14]].

Asset Enhancements, Divestments, and Portfolio Changes

Divestment: CICT divested its 45% interest in the Serviced Residence (SR) component at CapitaSpring for S\$126.0 million at an exit yield of ~3.6%. The transaction completed on 30 May 2025, with proceeds used to reduce debt and fund working capital [[7]].
Asset Enhancements:
- Gallileo, Frankfurt: Undergoing asset enhancement with an ROI target of ~8%, committed occupancy post-AEI is 97.7%. Major handover to ECB from late 3Q 2025; full income contribution expected from 2026 [[8]].
- IMM Building, Singapore: Ongoing AEI to further strengthen its position as a regional outlet destination [[8]].
- Lot One Shoppers’ Mall: AEI to create ~15,000 sq ft of new lettable area, targeting ROI >7%, works from 4Q 2025 to 1Q 2027 [[9]].
- Tampines Mall: AEI costing S\$24 million, targeting ROI ~7%, to enhance main entrance and tenant mix [[10]].

Capital Management and Fund Flows

Aggregate leverage improved to 37.9%, with 81% of borrowings on fixed rates and a healthy interest coverage ratio of 3.3x [[16]].
Sustainability-linked and green financing now accounts for 55.3% of total borrowings (S\$5.5 billion) [[17]].
No evidence of unusual fund flows, related party transactions, or suspicious gains/losses/expenses was found in the report.

Dividend Policy and Payments

Proposed Dividend: 5.62 cents per unit for 1H 2025, with payment scheduled for 18 September 2025 [[14]].
This reflects a 3.5% YoY increase in DPU compared to 1H 2024 [[14]].

Portfolio and Tenant Metrics

Portfolio Occupancy: 96.3% as at 30 June 2025, with retail at 98.6% and office at 94.6% [[19]].
Lease Expiry Profile: Well-spread, with no major concentration in any single year [[20]].
Diversified Tenant Base: Top 10 tenants account for only 16.9% of gross rental income, with no single tenant contributing over 4.8% [[21]].
Tenant Mix: No overconcentration in any trade sector; largest are Food & Beverages (18%), Banking/Financial Services (17.6%), and Fashion & Accessories (8.2%) [[22]].
Leasing Activity: Healthy renewals and new leases in both retail and office segments, with retention rates of 81.8% for retail and 76.8% for office YTD June 2025 [[23]].

Macroeconomic and Market Conditions

Singapore GDP: 2Q 2025 advance estimate up 4.3% YoY, with full-year forecast of 0-2% growth [[37]].
Inflation and Labour Market: Core inflation remains low (0.6% YoY for June 2025), and unemployment at 2.1% [[37]].
Retail and Office Market: Limited new supply in both retail and office segments supports rental resilience. Retail rents rose 1.7% YoY (Orchard) and 2.6% YoY (suburban) as of 2Q 2025; Grade A office rents up 1.3% YoY [[38]], [[42]].
Tourism Recovery: Tourist arrivals and receipts are recovering, with STB expecting spending growth to outpace arrivals in 2025 [[41]].

Sustainability Initiatives

CICT has achieved a 100% green-rated portfolio by gross floor area as at 30 June 2025, with a majority holding BCA Green Mark certifications [[34]].
Recognition for ESG and corporate governance practices, including Fortune Southeast Asia 500 and Forbes Global 2000 rankings [[34]].

Future Outlook

Income Growth: Positive rent reversions in FY 2023 and FY 2024 leases will contribute to FY 2025 revenue. Full-year distribution income from ION Orchard and new AEI completions (IMM, Lot One, Tampines Mall, Gallileo) are expected to drive future growth [[32]].
Cost Management: The company remains committed to disciplined capital management and prudent cost control amid an easing interest rate environment [[32]].
Risks: Management remains cautious of macroeconomic headwinds and aims to secure leases ahead of expiries [[32]].

Conclusion and Insights

CICT’s 1H 2025 report reflects a resilient and well-managed portfolio, with stable or improving key financial metrics despite the absence of income from divested assets. The trust has maintained high occupancy rates, healthy leasing activity, and prudent capital management, while continuing to invest in asset enhancements and sustainability initiatives. The positive trajectory in distributable income and DPU, alongside a strong balance sheet and recognition for ESG excellence, positions CICT well to navigate near-term economic uncertainties. No errors, inconsistencies, or unusual fund flows were noted in the disclosures. Overall, the financials and management commentary appear strong and well-aligned with investor interests.