Following the results, CICT enjoyed a series of higher target prices. Jonathan Koh of UOB Kay Hian, who now values this counter at $2.95 from $2.79 previously, is more upbeat after raising his DPU forecasts by 4.7% for 2026 and 5.8% for 2027, driven by improved operational performance and lower debt costs. Krishna Guha of Maybank Securities continues to like this REIT for its “strong credit and defensive portfolio”, raising his target price to $2.60 from $ 2.55. For Andy Wong of OCBC Group Research, the largest S-REIT by both market cap and portfolio size is best described as “might and mighty”. Wong has raised his fair value from $2.55 to $2.67.
Mervin Song and Terence Khi of JP Morgan are similarly upbeat. CICT is their top S-REIT pick, against which peers are benchmarked. “Our positive view is driven by a three-year DPU CAGR of 5%. This follows 3% per year DPU growth over the past four years despite headwinds from Covid and the fastest Fed hiking cycle in 40 years, a rare feat among S-REITs.”
They are also of the view that CICT’s valuation remains attractive, with its implied cap rate at mid-4%, which compares favourably with recent mall and prime office transactions such as Clementi Mall and Marina Bay Financial Centre (MBFC) Tower 3 at 4.1% and mid-3%, respectively. They expect FY2026 and FY2027 DPUs to be 12.2 cents and 12.8 cents, respectively. From an earlier target price of $2.60, they value this counter at $2.75.
Instead of just sitting back and jacking up rentals every year, CICT has been actively managing its portfolio. In January, it announced the divestment of Bukit Panjang Plaza for $420.8 million, 10% above valuation and 165% above the purchase price in 2007, to be completed in 1Q2026.
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CICT is also in a joint venture with CapitaLand Development and UOL Group to develop a greenfield site at Hougang Central into an integrated development and transport node for buses and two MRT lines. The total cost to CICT, according to Tan Choon Siang, the manager’s CEO, will be around $1.1 billion, or $3,600 psf, with a projected yield-on-cost of about 5%.
Geraldine Wong of DBS Research calls CICT’s successful tender in Hougang Central Site “strategically significant.” The deal will extend CICT’s development track record and add a new channel of growth for the REIT to scale its Singapore-centric retail exposure amid a competitive and tight investment landscape for Singapore malls, says Wong, who has raised her target price from $2.50 to $2.80.
Separately, asset enhancement works at another property, Gallileo, have been completed and will start contributing to net property income this year. CICT has announced asset enhancements for Lot One and Tampines Mall, with returns on investment of around 7% each. Capital Tower will commence its $25 million enhancement in 3Q2026 to reposition Level 9 into a community space and create a higher-yielding F&B space on Level 1.
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When asked about potential acquisitions, Tan was non-committal, citing pricing challenges. “We continue to look at our portfolio reconstitution. We have always been quite selective about what we look at,” says Tan at the results briefing on Feb 6.
However, he warns that there aren’t many acquisition opportunities in the market. Jewel at Changi Airport, which is in the sponsor pipeline, might take some time because the financials need to align with Tan’s pricing expectations before a transaction can proceed. “Also, the vendor needs to be willing to sell at some point,” he adds.
While there are a few office assets on the market, the challenge lies in pricing expectations. “We are unlikely to acquire an asset that doesn’t contribute financially or doesn’t really help unitholders. If it is not accretive, it will be quite challenging,” Tan says.
That said, the JP Morgan analysts are seeing more growth opportunities within CICT’s portfolio. They include redevelopment and asset enhancement opportunities at Junction 8, where there are plans by the government for a decentralised office hub at Bishan’s town centre. According to Song and Khi, CICT may be able to secure additional floor area at Junction 8 by rezoning adjacent roads to commercial use. However, it is not yet clear whether this will be a viable option.
