$CapLand IntCom T(C38U.SI)$Since hitting 1.92 low in early Feb 2022 on fears of steeper than expected interest rate hikes, CICT has been on a relentless upward climb aided by reopening news and return back to office. In early Apr 2022, it touched the 2.30s upper bound of the horizontal trading range but has since got rejected. The 2.32 region is also a support in 2019 that has now turned resistance. Aided by increasing rents and yield accretive acquisitions, it should only be a matter of time before CICT trades at 2019 levels again. Any retracement is likely to be supported around the 2.10 to 2.15 region where it traded for a good portion of 2021, barring any steeper than expected interest rate hikes. Assuming 10.4c annual dividend, the yield would be around 4.9% at 2.12.

On the news front, CICT is proactively seeking acquisitions in Singapore and other developed markets and has completed acquisition of 2 Sydney office buildings in Mar 2022. It reiterated its long term plan to remain Singapore focused with no more than 20% of portfolio property in overseas developed markets. Overseas markets provides income diversification to mitigate risks and downtime from Singapore. Although its Clarke Quay asset will benefit from the lifting of covid restrictions, CICT is repositioning the tenant mix to take advantage of residential developments that will be completing over the next few years.