CICT reports 2HFY2022 DPU of 5.36 cents, up 2.7% y-o-y

CICT's DPU for the FY2022 increased by 1.7% y-o-y to 10.58 cents.

The manager of CapitaLand Integrated Commercial Trust (CICT) has reported a distribution per unit (DPU) of 5.36 cents for the 2HFY2022 ended Dec 31, 2022, 2.7% higher than the 5.22 cents reported in the corresponding period the year before.

This brings the trust’s DPU for the FY2022 to 10.58 cents, 1.7% higher y-o-y.

The record date for the 2HFY2022 DPU is on Feb 9. Unitholders will be paid on March 17.

During the 2HFY2022, gross revenue rose by 14.4% y-o-y to $754.1 million mainly due to the contributions from the acquisitions of 66 Goulburn Street, 100 Arthur Street, 50.0% interest in 101-103 Miller Street and Greenwood Plaza in Sydney, Australia. The contribution from the acquisition of CapitaSky in Singapore, as well as higher occupancy, rental rates, as well as higher rental on gross turnover also led to the higher gross revenue.

Net property income (NPI) for the 2HFY2022 grew by 13.1% y-o-y to $541.7 million.

Distributable income for the 2HFY2022 grew by 4.8% y-o-y to $355.1 million.

For the FY2022, gross revenue grew by 10.5% y-o-y to $1.44 billion while NPI grew by 9.7% y-o-y to $1.04 billion.

The increase was mainly due to the contributions from the enlarged portfolio after the acquisitions, higher occupancy and rental rates achieved as well as higher rental on gross turnover.

The distributable income for the FY2022 rose by 4.1% y-o-y to $702.4 million.

For the 2HFY2022 and FY2022, the trust reported a loss of $90.4 million in the net change in fair value of investment properties. This was mainly due to lower valuation of the German properties and capitalised acquisition related costs for the Australian acquisitions, partially offset by net fair value gain arising from properties located in Singapore.

As at Dec 31, 2022, CICT’s aggregate property value increased by 8.9% y-o-y to $24.2 billion. The amount is based on the trust’s proportionate interests in its investment properties and joint ventures for the period. On a like-for-like basis excluding divestment and newly acquired properties in FY2022, the trust’s property values stood stable y-o-y.

The trust’s net asset value (NAV)/net tangible assets (NTA) per unit stood at $2.12 as at Dec 31, 2022.

As at Dec 31, 2022, portfolio committed occupancy stood at 95.8%. The trust’s weighted average lease expiry (WALE) based on gross rental income stood at 3.7 years. The WALE excludes gross turnover rent.

“CICT’s FY2022 financial performance had been boosted by the contributions from our newly acquired assets, a positive outcome from our series of portfolio reconstitution efforts. Our proactive asset management strategies have further strengthened and positioned CICT’s portfolio to reap the benefits of favourable market trends in the commercial real estate sector,” says Tony Tan, CEO of the manager.

“In addition to achieving higher property occupancy rates across the portfolio, CICT’s tenants’ sales per square foot in 2022 surpassed the 2019 pre-pandemic figure and shopper traffic also continued to trend upwards,” he adds.

Furthermore, “the completion of the asset enhancement initiatives (AEIs) at Raffles City Singapore and Six Battery Road in 2022, together with distributable income contribution from CapitaSpring, is expected to contribute positively to CICT’s performance in the new financial year,” continues Tan.

CICT’s aggregate leverage as at Dec 31, 2022, came in at 40.4%. About 81% of the trust’s total borrowings were on fixed rate borrowings, with an average term to maturity of 3.9 years.

Cash and cash equivalents as at Dec 31, 2022 stood at $248.4 million.

Units in CICT closed 1 cent lower or 0.47% down at $2.14 on Jan 31.

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