Broker Name: OCBC Group Research
Date of Report: 9 February 2026
Excerpt from OCBC Group Research report.
- CapitaLand Integrated Commercial Trust (CICT) delivered strong FY25 results with distribution per unit (DPU) climbing 6.4% year-on-year, surpassing expectations, driven by higher net property income and lower finance costs.
- Rental reversions for both retail and office portfolios were solid at 6.6% in FY25, with occupancy rates remaining high; future rental growth is expected to moderate to mid-single digits in FY26.
- Aggregate leverage improved to 38.6% and is set to decline further post-divestment of Bukit Panjang Plaza; cost of borrowing is also projected to fall to 3.0-3.1% in FY26.
- CICT continues to benefit from its scale, strong sponsor, and diversified portfolio, with ongoing development projects and potential catalysts from asset divestments and accretive acquisitions.
- Key risks include macroeconomic slowdown, rising interest rates, and slower-than-expected rental reversions, but the trust maintains a healthy balance sheet and financial flexibility for future growth.
- OCBC maintains a BUY rating on CICT with a raised fair value estimate of SGD 2.67, reflecting a positive outlook and expanded growth runway.
Report Summary
- CICT outperformed expectations in FY25, with strong DPU growth, high occupancy, and improved financial metrics, supported by positive leasing and prudent capital management.
- The trust is well-positioned for continued growth but remains mindful of external risks, with OCBC reaffirming its bullish stance.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com
