We are in the middle of the earnings season, with quite a number of REITs having already released their business updates or financial results for the period ended 30 June 2025.
Out of the 5 CapitaLand REITs and business trusts, I am a unitholder of 3 of them, and you can find my reviews of their results via the respective links below:
(i) CapitaLand India Trust (Results Released on 30 July) – A Review of CapitaLand India Trust’s 2Q and 1H FY2025 Results
(ii) CapitaLand Ascendas REIT (Results Released on 04 August) – How did CapitaLand Ascendas REIT Perform in 1H FY2025?
Early this morning (05 August), it is CapitaLand Integrated Commercial Trust’s turn to do so.
For those who are new to the Singapore-listed REIT, a quick introduction: CapitaLand Integrated commercial Trust (SGX: C38U), or CICT, invests in retail, office, and integrated development properties in 3 geographical locations: Singapore, Germany, and Australia. Despite it having investments beyond the local shores, but the REIT is still predominantly Singapore-focused, with 21 properties in its portfolio. It has 2 properties in Frankfurt, Germany, as well 3 in Sydney, Australia. In total, their 26 properties are worth a total of S$25.9 billion.
Since the release of its annual report back in April, one notable development surrounding the REIT was the completion of the sale of the REIT’s 45% interest in Glory SR Trust, which holds the serviced residence component of CapitaSpring on 30 May, with the net proceeds used to repay existing debt.
Together with the release of its latest quarterly resulfs, the REIT also announced the proposed acquisition of the remaining 55% stake of CapitaSpring it does not own, which will be financed through a private placement (where it plans to raise S$500 million). This move is said to deliver a DPU accretion of 1.1% (computed based on the assumption that CICT held and operated CapitaSpring’s Commercial Component from 01 January to 30 June). Following the completion, 95% of CICT’s total property value is in Singapore (up from 94%).
This quarter’s results is also the first under Mr Tan Choon Siang’s leadership (he has taken over as the CEO of the REIT from Mr Tony Tan from 01 May 2025).
In this post, you will find a review of CICT’s latest ‘report card’ in terms of its financial performance, portfolio occupancy and debt profile, as well as its distribution payout to unitholders:
Financial Figures (2Q FY2024 vs. 2Q FY2025, and 1H FY2024 vs. 1H FY2025)
2Q FY2024 vs. 2Q FY2025:
| 2Q FY2024 | 2Q FY2025 | % Variance | |
| Gross Revenue (S$’mil) | $393.4m | $392.3m | -0.3% |
| Property Operating Expenses (S$’mil) | $104.7m | $104.0m | -0.7% |
| Net Property Income (S$’mil) | $288.7m | $288.4m | -0.1% |
CICT did not post its financial figures for the 2nd quarter – I’ve computed based on the figures reported in its business update for the 1st quarter, as well as for the 1st half of the respective financial years.
Looking at the figures, it’s similar to the 1st quarter, where its gross revenue and net property income saw a slight dip by less than 1% compared to the same time period a year ago. This was due to the absence of revenue contribution from 21 Collyer Quay which was divested November 2024, and Gallileo due to the commencement of asset enhancement works from February 2024.
1H FY2024 vs. 1H FY2025:
| 1H FY2024 | 1H FY2025 | % Variance | |
| Gross Revenue (S$’mil) | $792.0m | $787.6m | -0.6% |
| Property Operating Expenses (S$’mil) | $209.6m | $207.8m | -0.9% |
| Net Property Income (S$’mil) | $582.4m | $579.9m | -0.4% |
| Distributable Income to Unitholders (S$’mil) | $366.5m | $411.9m | +12.4% |
For the 1st half of the year, CICT’s gross revenue and net property income also saw a slight 0.6% and 0.4% year on year dip to S$787.6 million and S$579.9 million respectively. This can be attributed to the absence of revenue contribution from 21 Collyer Quay (which was divested in November 2024), as well as Gallileo (which underwent asset enhancement works from February 2024). However, this was partially offset by an improved performance from existing properties.
The 0.9% year-on-year drop in the REIT’s property operating expenses to S$207.8 million was mainly due to lower utilities expenses and divestment of 21 Collyer Quay, partially offset by higher property tax expenses.
Finally, the 12.4% year-on-year jump in CICT’s distributable income to unitholders to S$411.9 million was driven by the acquisition of a 50% interest in ION Orchard, better performance from existing properties, as well as prudent management of operating and lower interest costs (which fell by 8.7% year on year, mainly due to the repayment of borrowings using net divestment proceeds from 21 Collyer Quay, and lower average cost of debt).
Portfolio Occupancy Profile (1Q FY2025 vs. 2Q FY2025)
The occupancy of CICT’s properties have been maintained at a very high level of above 95% for most quarters, with rental reversions recorded for new and/or renewed leases.
In the table below, you’ll find CICT’s portfolio occupancy profile recorded for the current quarter under review (i.e., 2Q FY2025 ended 30 June 2025) against that recorded in the previous quarter (i.e., 1Q FY2025 ended 31 March 2025):
| 1Q FY2025 | 2Q FY2025 | |
| Portfolio Occupancy (Retail) (%) | 98.8% | 98.6% |
| WALE (Retail) (by GRI) (years) | 1.9 years | 2.0 years |
| Rental Reversion (Retail) (%) | +10.4% | +7.7% |
| Portfolio Occupancy (Office) (%) | 94.7% | 94.6% |
| WALE (Office) (by GRI) (years) | 3.5 years | 3.4 years |
| Rental Reversion (Office) (%) | +5.4% | +4.8% |
| Portfolio Occupancy (Integrated Development) (%) | 98.6% | 97.8% |
| Rental Reversion (Integrated Development) (%) | 4.3 years | 4.5 years |
A slight decline can be seen in the occupancy rates of all of its property types.
The 0.2 percentage point (pp) dip in CICT’s retail occupancy was due to a slight 0.1pp dip in its suburban (from 99.6% in 1Q FY2025 to 99.5% in 2Q FY2025) and downtown (from 98.0% in 1Q FY2025 to 97.9% in 2Q FY2025) properties.
The occupancy rate of the REIT’s office properties also dipped by 0.1pp, due to a slight decline in its Singapore properties (from 97.9% in 1Q FY2025 to 97.7% in 2Q FY2025), offset by a small increase in its Australia properties (from 87.6% in 1Q FY2025 to 88.1% in 2Q FY2025). The occupancy rate of its Germany properties remains unchanged at 81.6%.
Rental reversion for new and/or renewed leases in its retail and office properties have also declined compared to the previous quarter – but they continue to remain in positive percentages, and this will contribute towards an improvement to the REIT’s financial performances in the quarters ahead.
Finally, lease expiries are also very well-spaced out, with just 6.0% of retail and 2.8% of office leases due for renewal in the 2nd half of FY2025 (of which, approximately 2.7% of retail leases and 1.2% of office leases are in advanced negotiation). In the 2 years thereafter (i.e., in FY2026 and FY2027), it has an average of 16.6% of retail leases and 7.2% of office leases due for renewal each year, with the remaining 17.2% of retail leases and 21.9% of office leases due for renewal only in FY2028 or later.
Debt Profile (1Q FY2025 vs. 2Q FY2025)
As far as CICT’s debt profile over the quarters are concerned, its also maintained at healthy levels, with its aggregate leverage at less than or around the 40% level. Its debt maturity is also well-spread out over the years.
Similar to how I have reviewed the REIT’s portfolio occupancy profile in the previous section, in the table below, you’ll find a comparison of its debt profile for the current quarter under review (i.e., 2Q FY2025 ended 30 June 2025) compared against that in the previous quarter (i.e., 1Q FY2025 ended 31 March 2025):
| 1Q FY2025 | 2Q FY2025 | |
| Aggregate Leverage (%) | 38.7% | 37.9% |
| Interest Coverage Ratio (times) | 3.2x | 3.3x |
| Average Cost of Debt (%) | 3.4% | 3.4% |
| Average Term to Debt Maturity (years) | 4.2 years | 4.0 years |
| % of Borrowings Hedged at Fixed Rates | 78.0% | 81.0% |
CICT’s debt profile saw a slight improvement compared to the previous quarter – with its aggregate leverage dipping by 0.8pp to 37.9% (and this, in my opinion, is a very healthy ratio), average cost of debt remaining unchanged (at 3.4%), and the percentage of borrowings hedged at fixed rates increased slightly to 81.0% (which is a relatively high percentage).
As far as debt maturity goes, it is well-spread out – with 4% of borrowings due for refinancing in the 2nd half of FY2025, and another 9% of borrowings due for refinancing in FY2026. In the 5 financial years thereafter (between FY2027 and FY2031), it has an average of about 14.6% of borrowings due for refinancing each year, with the remaining 14% of borrowings due for refinancing only in FY2032 or later.
Distribution Payout to Unitholders (1H FY2024 vs. 1H FY2025)
The CapitaLand REITs and business trusts all have a semi-annual distribution payout frequency.
In the table below, you’ll find CICT’s distribution payout for 1H FY2025, compared against the amount paid out a year ago (i.e., 1H FY2024), as follows:
| 1H FY2024 | 1H FY2025 | % Variance | |
| Distribution Per Unit (S$’cents) | 5.43 cents | 5.62 cents | +3.5% |
If you are a unitholder of CICT, do take note of the following dates on its distribution payout:
Ex-Date: 12 August 2025
Record Date: 13 August 2025
Payout Date: 18 September 2025
CEO Mr Tan Choon Siang’s Comments & Outlook (Extracted from the REIT’s Press Release)
“Our first-half results underscore the strength and resilience of CICT, driven by active portfolio management and reconstitution efforts, as well as disciplined capital management. The income contribution from ION Orchard and stronger portfolio performance have effectively offset the income gap from the sale of 21 Collyer Quay and the ongoing AEI at Gallileo. In addition, the recent divestment of the non-core serviced residence component of CapitaSpring on 30 May 2025 has bolstered CICT’s financial flexibility, with net proceeds used to reduce debt and support working capital needs. These actions affirm our commitment to enhancing asset and portfolio value, recycling capital and maintaining financial discipline in a dynamic macroeconomic environment.
We remain proactive in identifying assets to strengthen their market positioning and relevance. With AEI works completed at IMM Building and Gallileo nearing handover, we are preparing to commence new enhancement projects at Lot One Shoppers’ Mall and Tampines Mall starting in 4Q 2025. These AEIs will expand our offerings, elevate the shopper experience, and unlock additional asset potential.
Looking ahead, our focus remains on driving sustainable growth through proactive portfolio management and prudent cost and capital management. With our current aggregate leverage ratio, we are well-positioned to seize accretive growth opportunities while maintaining a disciplined investment approach.”
Closing Thoughts
On the whole, it was a stable set of results reported by CICT.
As far as its financial performances goes, even though there’s a slight dip (both in the 2nd quarter, as well as in the 1st half of the year compared to the respective time periods a year ago), it was due to the divestment of 21 Collyer Quay, and ongoing asset enhancement works in Gallileo.
CICT’s portfolio occupancy for its retail, office, and integrated development properties also inched down slightly – however, in terms of the occupancy rate of its properties, they are all at above 97%, except for its Australia office properties, which was at 88.1% (still considered relatively high).
Debt profile of the REIT is certainly at a very healthy level – with its aggregate leverage of 37.9% a good debt headroom to the regulatory limit of 50%, and debt maturity over the next few years very well-spaced out.
Last but not least, for those who prefer to invest in REITs that derive a huge percentage of income from Singapore, CICT is definitely one you can consider, as in the 1st half of FY2025, 95.1% of its gross revenue is derived from the city state (with the remaining 3.4% coming from its properties in Australia, and 1.5% from Germany).
This brings me to the end of my review of CICT’s latest results for the 2nd quarter, as well as for the 1st half of FY2025. Do note that all the opinions expressed in this post are purely mine which I’m sharing for educational purposes only, and they do not represent any buy or sell calls for the units of the REIT. You’re strongly advised to do your own due diligence before making any investment decisions.
Related Documents
Disclaimer: At the time of writing, I am a unitholder of CapitaLand Integrated Commercial Trust.
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