CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT for short, is Singapore’s first and largest-listed REIT with a market capitalisation of US$10.3 billion (S$14.1 billion) as at 31 December 2024.

It debuted as CapitaLand Mall Trust back in July 2002 (where it invests in retail properties in Singapore) and was renamed CICT following the merger with CapitaLand Commercial Trust (which invests in office properties in Singapore and Germany).

Following the conclusion of the financial year on 31 December 2024 (i.e., FY2024), CICT published its annual report 2024 on Monday (24 March 2025), to which you’ll find a summary of the key pointers to take note of in this post, together with details about its upcoming annual general meeting (AGM):

Key Highlights from CICT’s Annual Report

Key Performance Highlights:

  • Gross revenue rose 1.7% year on year to S$1,586.3 million, led by improved gross rental income across most properties. This was despite the absence of revenue from Gallileo (which is undergoing asset enhancement initiative [AEI] since February 2024), and 21 Collyer Quay (which was divested in November 2024 at an exit yield below 3.5% [based on the annualised net property income for the 9-month period ended 30 September 2024, and the sale price], with proceeds used to pare down borrowings and reduce aggregate leverage, giving the REIT more financial headroom to fund for potential growth opportunities).
  • CICT’s Singapore assets accounted for 94.7% of the financial year’s gross revenue, with remaining from Australia (at 3.4%) and Germany (at 1.9%).
  • Net property income climbed 3.4% year on year to S$1,153.5 million, mainly due to higher revenue from existing properties, along with lower property management reimbursements under the new property management agreement and lower utilities expenses.
  • Distributable income to unitholders increased by 5.1% year on year S$752.2 million, which can be attributed to organic growth and contribution from CICT’s 50% interest in ION Orchard (which was first announced in September and then completed in October 2024), as well as prudent management of operating and interest costs.
  • Distribution Per Unit rose by 1.2% year on year S$0.1088, due to a larger unit base following the REIT’s distribution reinvestment plan in March 2024 and equity fund raising in September 2024.
  • Portfolio occupancy is at 96.7%, with a weighted average lease expiry (WALE) of 3.3 years, and positive rental reversions achieved for both its retail (at +8.8%) and office (at +11.1%) portfolios.
  • Total property value rose 6.2% year on year to S$26.0 billion, with the lion’s share of the property value, at 94.5%, in Singapore, followed by 2.9% in Australia, and 2.6% in Germany.
  • Aggregate leverage is at 38.5%, with its average cost of debt at 3.6%.

Enhancing Value of Existing Properties through AEI:

  • In Singapore, an ongoing phased AEI to increase the number of outlet offerings at IMM Building (with target completion in 3Q 2025) will further anchor its positioning as a regional outlet destination for both residents and foreign visitors, with the revitalisation on track to achieve a return on investment of approximately 8% based on capital expenditure of S$48 million.
  • In Germany, AEI of approximately EUR180 million is currently underway at the 38-storey Gallileo (located in Frankfurt’s banking district) with target completion progressively in 2H 2025 to elevate the property’s attribute as a modern workspace with enhanced functionality and operating efficiency. Committed occupancy for the property reached 97.4%, with the European Central Bank signed on as an anchor tenant.
  • In Australia, an AEI of approximately A$9 million was completed in July 2024 at 101 Miller Street, transforming the lobby into a best-in-class communal space with meeting rooms, event space, and an inviting cafe – which was well-received by tenants.

Navigating the Operating Environment:

Retail:

  • Consumer activity in Singapore remained healthy throughout FY2024, driven by remote workers returning to office and various cultural and entertainment initiatives undertaken by the Singapore Tourism Board to boost tourism – this led to shopper traffic in CICT’s retail portfolio growing by 8.7% over the previous year.
  • Tenant sales per square foot increased by 3.4% year-on-year in FY2024 due to the 2-month contribution from ION Orchard, partially offset by ongoing AEI at IMM Building and an increase in outbound travel during school and year-end holidays.
  • Tenant retention rate stayed high at 84.5% for its Singapore retail portfolio, with CICT consistently rejuvenating the tenant mix to stay competitive and relevant in today’s retail environment, where they continue to introduce new-to-market and new-to-portfolio concepts and actively work with its retailers to refresh their offerings in its malls.
  • Positive rental reversions were recorded for both its suburban (at +9.0%) and downtown malls (at +8.6%), largely led by healthy leasing demand from both new and existing brands.

Office:

  • Despite competition from new office building completions and cautious sentiment due to global economic uncertainties and hybrid work trends, committed occupancy of CICT’s office portfolio remained stable at 94.8%, along with a high tenant retention rate of 81.9%, and a positive rental reversion of +11.1% for its Singapore office portfolio.
  • CICT’s strategy to navigate challenges in the overseas market environment continues to be two-fold: (i) proactive leading initiatives to retain and attract tenants; and (ii) future-proofing assets through targeted enhancements to meet tenants’ revolving needs (for instance, at 101 Miller Street in Australia, its lobby was enhanced to add vibrancy and facilitate the gradual return of employees to office-based work; at 100 Arthur Street & 66 Goulburn Street, the introduction of fitted-out workspaces facilitated fast, efficient office set up while mitigating fit-out costs for occupiers).

Commitment to Sustainability:

  • CICT remains committed towards environmental sustainability, governance, and social well-being as detailed in its ‘CLI 2030 Sustainability Master Plan (SMP)’, where part of the plan is the Net Zero Commitment aimed at achieving net zero carbon emissions by 2050.
  • The REIT’s focus on improving its Environmental, Social, and Governance (ESG) performance to provide its stakeholders with the highest standard of accountability and transparency has seen it being recognised as a Sector Leader in the Global Listed, Asia Regional Sector and Asia Regional Listed categories in the GRESB Real Estate Assessment 2024.

Looking Ahead:

  • CICT’s management will continue to pursue acquisitions and growth opportunities to enhance the resilience and value of its portfolio, while maintaining a healthy balance sheet and efficient cost of capital.
  • Singapore, Australia, and Germany will continue to be CICT’s key markets, with the REIT looking to further strengthen its position in Singapore as a market leader.

Details of CICT’s AGM

When? Tuesday, 22 April 2025
Where? Marina Bay Sands Expo and Convention Centre, Level 4, Orchid Ballroom, 10 Bayfront Avenue, Singapore 018956
Time? 2.30pm

The meeting will be held in a wholly physical format, with no options for unitholders to participate virtually.

For those whose units are held in a CDP account, no pre-registration is required, as verification of unitholdings will be done at the event venue. For those whose units are held in a custodian account, you will need to get in touch with your brokerage to appoint you to attend the meeting as a proxy.

Closing Thoughts

CICT had a resilient FY2024 in my opinion – with its financial performances continuing to report an improvement, portfolio occupancy continues to remain at a high level of above 90%, along with a healthy debt profile with its aggregate leverage at under 40%. Its distribution per unit is also one of the few Singapore-listed REITs that managed to report a year-on-year improvement.

In case you’re not already aware, the coming AGM will be CEO Mr Tony Tan’s last, as he will be taking on the role of Chief Corporate Officer of CapitaLand Development from 01 May 2025. Mr Tan’s role will be replaced by another Mr Tan – in Mr Tan Choon Siang, who was previously the CEO and executive manager of CapitaLand Malaysia Trust. I am looking forward to hearing more about his plans to advance the REIT in due course.

With that, I have come to the end of my summary of CICT’s latest annual report 2024. I hope you have found the information useful. Please note that all personal opinions expressed in this post are for educational purposes only, and they do not imply any buy or sell calls for the REIT’s units. You are strongly encouraged to do your own due diligence before you make any investment decisions.

Related Documents

Disclaimer: At the time of writing, I am a unitholder of CapitaLand Integrated Commercial Trust.

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