CICT H1 DPU up 7.1% at S$0.0602, bolstered by CapitaSpring and Gallileo tower in Germany

[SINGAPORE] CapitaLand Integrated Commercial Trust (CICT) on Wednesday (Aug 12) posted a distribution per unit (DPU) of S$0.0602 for its first half ended Jun 30, up 7.1 per cent from S$0.0562 in the corresponding year-ago period.

The DPU growth was achieved despite an enlarged unit base following a private placement in April, supported by stronger operating performance and lower interest expenses.

Distributable income for H1 grew 13.3 per cent year on year to S$466.7 million from S$411.9 million previously.

Revenue for the six-month period was up 7.5 per cent on the year at S$846.8 million, while net property income (NPI) rose 8.7 per cent to S$630.5 million.

The manager of CICT attributed the higher top-line performance to income contributions from the commercial component of CapitaSpring – in which CICT acquired the remaining 55 per cent interest in August 2025 – and lease commencement at Gallileo in Germany following asset enhancement works. This was partially offset by the divestment of Bukit Panjang Plaza in February this year.

The H1 DPU includes an advanced distribution of S$0.0398 a unit for the period from Jan 1 to Apr 28, which was paid on Jun 8. The remaining DPU of S$0.0204 a unit will be distributed on Sep 25.

Overall portfolio occupancy remained high at 95.6 per cent as at Jun 30. Occupancy for the retail portfolio stood at 97.7 per cent, while integrated developments and office portfolios recorded occupancies of 95.5 per cent and 94.4 per cent, respectively.

During the period, CICT achieved positive rental reversions of 4 per cent for its retail portfolio and 6.5 per cent for its office portfolio, with healthy tenant retention rates of 83.9 per cent and 70.8 per cent, respectively.

As at Jun 30, 2026, CICT’s aggregate leverage stood at 37.4 per cent, down from 38.5 per cent as at Mar 31. Its average cost of debt held steady at 2.9 per cent, with about 78 per cent of total borrowings on fixed interest rates. The real estate investment trust’s (Reit) average term-to-maturity of debt was 4.1 years.

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CICT’s adjusted net asset value per unit was S$2.13 as at end-June, up 1.9 per cent from S$2.09 as at Dec 31, 2025.

Tan Choon Siang, CEO of the manager, said: “CICT delivered a robust set of results for the first half of 2026 despite a challenging macroeconomic environment.”

He added that key income drivers, including lease commencement at Gallileo, the acquisition of Paragon and the continued flow-through of positive rental reversions, will continue to drive CICT’s growth.

CICT completed its acquisition of Paragon on Jul 1. In April, the Reit entered into an agreement to sell Asia Square Tower 2 for an agreed property value of S$2.48 billion, with completion expected in the second half of 2026.

Units of CICT closed 2 per cent or S$0.05 higher at S$2.51 on Tuesday.