CapitaLand Integrated Commercial Trust (CICT) has reported a distribution per unit (DPU) of 10.75 cents for the FY2023 ended Dec 31, 2023, 1.6% higher y-o-y. DPU for the 2HFY2023 was up by 1.7% y-o-y at 5.45 cents.
The higher DPUs were due to higher distributable incomes. For the FY2023, CICT’s distributable income rose by 1.9% y-o-y to $715.7 million while 2HFY2023 distributable income was up by 2.1% y-o-y at $362.5 million. During the 2HFY2023, $7.0 million was retained for general corporate and working capital purposes, compared to the $6.7 million retained in the 2HFY2022.
The higher distributable income for the second half of the year was due to sound operational performance from proactive portfolio management and prudent cost management.
For the 2HFY2023, CICT announced a distribution reinvestment plan (DRP) applicable to its distribution for the second half of the year. The DRP gives unitholders the option to receive their distributions in units or a combination of units and cash in lieu of the cash amount of distribution.
FY2023 gross revenue rose by 8.2% y-o-y to $1.56 billion mainly due to the full year contributions stemming from the acquisitions of Goulburn Street, 100 Arthur Street, the 50.0% interest in 101-103 Miller Street and Greenwood Plaza in Sydney, Australia and CapitaSky. The higher figure was also due to better performances during the year. Meanwhile, 2HFY2023 gross revenue rose by 4.1% y-o-y to $785.2 million due to higher rental and occupancy rates.
Net property income (NPI) for the FY2023 was up by 7.0% y-o-y at $1.12 billion while 2HFY2023 NPI rose by 4.0% y-o-y to $563.6 million.
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As at Dec 31, 2023, CICT’s portfolio occupancy stood at 97.3%, 1.5 percentage points higher y-o-y while weighted average lease expiry (WALE) stood at 3.4 years, 0.3 years lower y-o-y. Retail rent reversions stood at a positive 8.5% while CICT’s office portfolio reversions stood at a positive 9.0%.
Aggregate leverage stood at 39.9% while interest coverage stood at 3.1 times. Total portfolio property value grew by 1.2% y-o-y to $24.5 billion.
As at Dec 31, 2023, cash and cash equivalents stood at $140.7 million.
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“In 2023, CICT adopted a conservative approach in response to challenging market conditions and a high-cost environment. We focused on driving organic growth through proactive portfolio management, prudent cost management, and discipline in capital management. This strategy has yielded positive results. Despite the external circumstances, CICT's financial performance in 2HFY2023 remained stable, highlighting the resilience and effective management of the portfolio. Amidst prevailing global uncertainties, we will maintain a stance of caution and vigilance. At the same time, our commitment to driving sustainable growth and returns remains steadfast,” says Teo Swee Lian, chairman of the manager.
"CICT achieved improvements in operational performance across its retail, office and integrated development portfolios, as evidenced by the higher committed occupancies and positive rent reversions. We have taken proactive measures to address headwinds in the Australia and Germany markets, by embarking on upgrading and asset enhancement initiatives that will drive stability and growth in our overseas portfolio. Despite cost challenges, we have maintained resilience in our home ground. The solid fundamentals of our Singapore portfolio have continued to serve as a strong anchor for CICT's growth, strengthening the overall value of our portfolio,” adds Tony Tan, CEO of the manager.
In 2024, the REIT will focus on optimising its portfolio for growth, he continues. This will be done through a proactive portfolio management, value creation, and prudent cost and capital management.
Unitholders will receive their distributions on March 28.
As at 9.26am, units in CICT are trading 1 cent higher or 0.51% up at $1.97.
