To The Moon

Why I Bought CapitaLand Integrated Commercial Trust (C38U.SI)

In a market climate clouded by uncertainty and rising global interest rates, making selective and strategic REIT investments has become more important than ever. Among the many choices on the SGX, I have chosen to accumulate CapitaLand Integrated Commercial Trust (CICT), ticker C38U.SI — and here's why.

1. Prime Assets in Strategic Locations

CICT owns a diversified portfolio of retail and office assets in Singapore's most prominent commercial districts — including Raffles City, Plaza Singapura, Funan, and CapitaSpring. Many of these are trophy assets with irreplaceable locations that continue to draw strong footfall and attract resilient tenants. The trust has also begun expanding its footprint into key overseas markets like Frankfurt and Sydney, offering a blend of stability and growth.

2. Strong Recovery in Retail and Office Demand

Singapore's post-pandemic recovery has been robust, especially in the downtown core and tourist-heavy areas. CICT's retail segment has benefited from the return of tourists, normalization of consumer behavior, and resilient tenant sales. Office space, despite global hybrid work trends, remains in demand for high-quality buildings — and CICT's Grade A offerings continue to command healthy occupancy and rental reversion.

3. Stable Financials and Prudent Capital Management

Despite macroeconomic headwinds, CICT has maintained a healthy balance sheet with a gearing ratio below the 45% MAS limit, giving it flexibility for future acquisitions or asset enhancement initiatives. Its weighted average debt maturity remains well-staggered, reducing refinancing risks. In recent quarters, CICT has demonstrated resilience by delivering consistent DPU (Distribution per Unit) and maintaining occupancy above 95%, outperforming many peers.

4. Attractive Yield for Long-Term Income

With current prices hovering near multi-year lows, CICT offers an attractive forward yield of around 5.5% to 6%, making it a compelling choice for income-focused investors. For me, this provides a steady passive income stream backed by real assets in land-scarce Singapore. The regular semi-annual distributions also give investors peace of mind amid market volatility.

5. Undervalued Relative to NAV and Sector Peers

CICT is currently trading at a discount to its Net Asset Value (NAV), which offers a margin of safety. Given its high-quality asset base and strong sponsor (CapitaLand Investment), I view this discount as an opportunity rather than a red flag. Compared to other commercial REITs, CICT's scale, tenant diversification, and proactive asset management provide superior downside protection.

Final Thoughts

My decision to invest in C38U.SI is grounded in its strong fundamentals, income stability, and attractive valuation. While the REIT sector faces short-term headwinds from higher interest rates, I believe that CICT's well-positioned assets, experienced management, and focus on long-term value creation make it a worthy addition to any dividend-focused or defensive portfolio.

As always, I will continue to monitor macroeconomic conditions and CICT's quarterly performance closely — but for now, I am confident in the long-term potential of this cornerstone SGX REIT.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

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