CapitaLand Integrated Commercial Trust's 2H FY23 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue, NPI, distributable income & DPU have improved YoY due to higher rental and higher occupancy.
Shopper Traffic and Tenant Sales
Both tenant sales and shopper traffic have improved YoY in which tenant sales continue to surpass pre-Covid level.
Rental Reversion
Rental reversion is at 8.5% for the retail portfolio and 9% for the office portfolio.
Asset Enhancement Initiative
AEI for IMM is scheduled to start in 1Q 2024 and expected to be completed by 3Q 2025. Additionally, AEI for 101 Miller Street is projected to be completed by 2Q 2024. As for Gallileo, AEI is set to commence in February 2024 and will take a minimum of 18 months to complete.
Related Parties Shareholding
REIT sponsor and directors of the REIT manager hold a relatively low proportion of shares.
Lease Profile
Overall, the lease profile falls within the median range.
Debt Profile
WADM is relatively wrong with a well-spread maturity.
Diversification Profile
Despite its geographical concentration, the portfolio exhibits diversification in terms of sectors, properties and tenants.
Key Financial Metrics
Key financial metrics fall within the median range, with a favorable point of low manager management fees over operating distributable income.
DPU Breakdown
TTM Distributable Income Breakdown:93.7% from Operation6.3% from Management Fees Paid in Units
TTM DPU = 98.2% of Distributable Income
Trends
Flat: NAV per Unit
Slight Downtrend: DPU from Operation, Committed Occupancy
Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
Dividend Yield - Average for 1y & 3y; Above +1SD for 5y
P/NAV - Average for 1y, 3y & 5y
Author's Opinion
As compared to the previous half-year, gross revenue, NPI and DPU have been improved. Committed occupancy has been improving since its lowest point in 1Q 2023 and remains healthy at 97.3%. For debt, there is 14% of debt requires refinancing in 2024.
For more information, check out REIT-TIREMENT
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