“In our view, CICT’s FY2025 result was a strong beat and a testament again to the market that Singapore assets can continue to deliver in times of uncertainty abroad,” states Wong.
From Wong’s perspective, CICT’s growth in 2026 will continue to depend on factors such as achieving mid-single-digit for Singapore’s rental reversion, staggered asset enhancement initiative (AEI) completions in Tampines Mall and Lot One Shoppers Mall, handover of Galileo to tenant European Central Bank (ECB) in 2QFY2026 and further interest savings with forward interest cost guided to come down to 3.0%.
CICT’s participation in the upcoming Hougang Central site development, according to Wong, can also be interpreted as its signal to grow without paying “sky-high” prices seen in the markets today. By doing so, CICT will further enhance its portfolio’s well-liked dominant exposure to Singapore assets, which now makes up 94% of overall portfolio.
She is maintaining a “buy” call on CICT with a target price of $2.50 being under review and guided the REIT as the top sector sector pick.
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For CGS International, CICT’s FY2025 distributable profit was 5.07% above the team’s estimate.
“The strong performance was due to contributions from ION Orchard, the step-up acquisition to 100% of CapitaSpring’s commercial component, stronger operating performance from existing properties, and lower interest expense, partly offset by the divestment of 21 Collyer Quay in Nov 2024,” state analysts Lock Mun Yee and Li Jialin.
They see contributions from Frankfurt CBD commercial building Gallileo progressively felt in FY2026 as the handover of space to ECB has commenced, with phase two targeted to be handed over in 1QFY2026. In their view, the handover of spaces in Gallileo should bolster office rental income.
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The team is keeping their “add” call on CICT. “We lift our FY2026-FY2027 DPUs by 1.07-1.46% to factor in improved NPI margins. Hence, our DDM-based TP is raised to $2.74, with cost of equity at 6.67%,” concludes the team.
Maybank Securities analyst Krishna Guha, meanwhile, says CICT achieved a “strong finish” in FY2025.
In his Feb 8 report, he has retained his “buy” call on CICT on the back of strong credit and defensive portfolio. Guha lifts his DPU estimates for FY2026 and FY2027 by 1.8% and 3.5% respectively and raises his DDM-based target price by 2% to $2.60.
“Occupancy inched up, led by overseas offices. Reversions were flat-to-lower but stayed at a mid-single digit positive level. Valuation was up low single-digit, led by Singapore portfolio and overall was an inline performance,” explains Guha.
Guha also highlighted that CICT introduced a new AEI at Capital Tower at $25 million capex to convert its level 9 auditorium and other spaces to F&B and community space.
“CICT’s management further elaborated on the merits of commercial development in the mixed-use project in Hougang,” concludes Guha.
For UOB Kay Hian’s Jonathan Koh, he sees CICT’s office portfolio benefitting from the full ownership of CapitaSpring, given that net property income from the office portfolio jumped 11.8% in 2HFY2025 due to the acquisition of the remaining 55% in CapitaSpring completed on Aug 26, 2025.
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On the Hougang Central site development, Koh foresees that with CICT’s participation in the development phase, the REIT will be able to shape the mall’s design and leasing strategy, while securing a yield on cost of over 5%.
“In terms of acquisitions, management is expected to focus on expansion in Singapore, including Changi Jewel from its sponsor pipeline. CICT could explore divesting overseas assets,” states Koh.
With that, Koh is maintaining his “buy” call on CICT and a target price of $2.95. “We raised our DPU forecasts by 4.7% for FY2026 and 5.8% for FY2027 due to an improved operational performance and the lower cost of debt,” concludes Koh.
Finally, RHB Bank Singapore’s Vijay Natarajan says the upcoming Hougang Central site development will provide CICT with a new stream of growth, especially with increasingly limited opportunities to acquire prime Singapore retail malls at reasonable prices.
“CICT will fully develop and own 100% of the commercial component with an estimated net leasable area of 300,000 sq ft. The overall development cost is expected to be about $1.1 billion, with the yield on-cost guided at over 5%. As interest expenses are capitalised during development, there will be a minimal DPU impact,” says Natarajan.
From Natarajan’s perspective, FY2026 should be another good year for CICT, driven by positive rent growth, full-year contributions from Gallileo and CapitaSpring, as well as lower finance costs.
As such, Natarajan revised upwards his FY2026-FY2027 DPU forecast by 1%-2%, mainly driven by lowering interest cost assumptions, and projects a 3% CAGR DPU growth for FY2026-FY2028.
Natarajan is keeping his “buy” call on CICT with a revised target price of $2.73 from $2.69, representing 12% upside with 5% yield for FY2026.
As at 11.50am, units in CICT are trading two cents higher, or 0.81% higher at $2.47.
