CICT posts 1H 2021 distributable income of S$335.9 million
Unitholders to receive 1H 2021 DPU of 5.18 cents
Singapore, 28 July 2021 – CapitaLand Integrated Commercial Trust Management Limited (CICTML), the manager of CapitaLand Integrated Commercial Trust (CICT or Trust), announced today a distributable income of S$335.9 million1 for the six months ended 30 June 2021 (1H 2021), compared to the distributable income of S$109.7 million2 for the six months ended 30 June 2020 (1H 2020). The increase was largely driven by contribution from CapitaLand Commercial Trust (CCT) assets and 100% contribution from Raffles City Singapore3 after the merger with CCT.
The distribution per unit (DPU) for 1H 2021 is 5.18 cents. With the record date on Thursday, 5 August 2021, Unitholders can expect to receive the DPU on Thursday, 9 September 2021.
For 1H 2021, CICT delivered an improved set of financial results on the back of an enlarged portfolio. Gross revenue was S$645.7 million (1H 2020: S$318.4 million) and net property income was S$472.2 million (1H 2020: S$216.4 million). In 1H 2021, CICT granted S$18.9 million of rental waivers for tenants affected by COVID-19, particularly during Singapore’s first Phase 2 (Heightened Alert) from 16 May to 13 June 2021.
Mr Tony Tan, CEO of CICTML, said: “The operational challenges arising from the evolving pandemic situation have affected our business as well as our tenants. We have provided more regular cleaning and adopted safe management measures to ensure the safety of our shoppers and tenants. Targeted support was also given to more affected tenants due to restrictions in trading and during Phase 2 (Heightened Alert). In view of persisting market uncertainty, we will continue to be agile and flexible in managing our portfolio. Deepening stakeholder engagement and providing tenants with the appropriate targeted support to enhance the resilience of CICT’s ecosystem remains an ongoing focus.”
“In CICT’s core markets of Singapore and Frankfurt, retail, office and integrated development assets remain in demand. To future-enable our properties, we are leveraging technology and taking proactive steps to adapt and reposition. This will ensure our properties stay relevant and remain attractive for tenants and shoppers. In terms of portfolio management, we are exploring reconstitution and other inorganic growth opportunities.”
“Looking ahead, as Singapore transitions to a new normal of living with endemic COVID-19 and amidst rising vaccination rates, CICT’s portfolio of quality retail and office assets is wellpositioned to ride the eventual market upturn.”
Summary of CICT’s results
|
1H 2021 |
1H 2020 |
Gross Revenue (S$’000) |
645,657 |
318,387 |
Net Property Income (S$’000) |
472,163 |
216,352 |
Amount Available for Distribution (S$’000) |
338,061 |
160,935 |
Distributable Income (S$’000) |
335,8941 |
109,7202 |
DPU (cents) |
5.18 |
2.96 |
Notes:
1 S$2.2 million was retained for general corporate and working capital purposes for 1H 2021, comprising S$0.8 million and S$1.4 million received from CLCT and Sentral REIT respectively.
2 For 1H 2020, in view of the challenging operating environment due to the COVID-19 pandemic, S$46.4 million of taxable income available for distribution to Unitholders was retained. S$4.8 million received from CLCT was retained for general corporate and working capital purposes.
Support for tenants in Phase 2 (Heightened Alert) from 22 July to 18 August 2021
CICT is committed to proactively work alongside tenants to get through the challenging times brought about by the unforeseen return to Phase 2 (Heightened Alert) from 22 July to 18 August 2021. Targeted assistance by CICT may include relevant rental restructuring or waivers as well as marketing support to continue tenants’ sales through CapitaLand’s digital platforms, eCapitaMall and Capita3Eats.
Proactive portfolio and asset management
As at 30 June 2021, CICT achieved a committed portfolio occupancy of 94.9%; retail assets4 at 97.0%, office asset4 at 93.0% and integrated developments at 96.5%. CICT signed approximately 1.0 million square feet (sq ft) of new leases and renewals in 1H 2021, comprising 0.54 million sq ft of retail space and 0.48 million sq ft of office space. The majority of leases signed are renewals. New leases signed include tenants largely from sectors such as Financial Services, Food & Beverage and Legal. Retaining and attracting tenants will be an ongoing focus for the remaining 7.2% of retail leases and 3.9% of office leases by portfolio gross rental income due in 2021.
Progress has been achieved in CICT’s asset enhancement initiatives, with upgrading works for 21 Collyer Quay largely completed. WeWork’s lease for 21 Collyer Quay will commence in late 2021. Redevelopment project, CapitaSpring, reported a committed occupancy of 61.8% as at 22 July 2021 with another 15% under advance negotiation. Its target completion remains on track for 4Q 2021.
Prudent capital management
CICT’s key financial indicators remained healthy as at 30 June 2021. Aggregate leverage was 40.5% and the average cost of debt was maintained at 2.4% while the average term to maturity was 4.3 years. The proportion of fixed-rate borrowings stood at 85%. CICT maintained its credit rating of “A-” and “A3” by Standard & Poor’s and Moody’s respectively.
Accolades
In line with CapitaLand’s 2030 Sustainability Master Plan, CICT is committed to achieving a minimum of green certification for all existing properties, including those outside of Singapore. Upon the attainment of BREEAM5 Good by Main Airport Center in Frankfurt, Germany in April 2021, CICT has met its target of a 100% green-rated portfolio.
CICT has been recognised as one of the “Most Honoured Companies” under Rest of Asia by Institutional Investor under their 2021 All-Asia (ex-Japan) Executive Team. For this survey, a total of 4,084 investors and sell-side analysts participated, nominating a total of 1,438 companies across 18 sectors. These companies were rated on several core areas, including Financial Disclosure, IR Services and Communications, COVID-19 responses, leadership and ESG.
Notes:
1 S$2.2 million was retained for general corporate and working capital purposes for 1H 2021, comprising S$0.8 million and S$1.4 million received from CapitaLand China Trust (CLCT) and Sentral REIT respectively.
2 For 1H 2020, in view of the challenging operating environment due to the COVID-19 pandemic, S$46.4 million of taxable income available for distribution to Unitholders was retained. S$4.8 million received from CLCT was retained for general corporate and working capital purposes.
3 The merger with CCT was completed on 21 October 2020 via a trust scheme of arrangement where all the units of CCT were acquired by CICT. Raffles City Singapore is a direct wholly owned subsidiary of CICT after the merger, instead of a joint venture.
4 Retail and office occupancy rates include the respective retail and office components within integrated developments.