CapitaLand Integrated Commercial Trust (CICT) is set to bolster its portfolio by upgrading assets and exploring acquisitions, according to S&P Global Ratings. The Singapore-based real estate investment trust (REIT) aims to maintain its competitive edge, particularly in challenging markets like North Sydney, Australia. This strategy includes ongoing projects at the IMM Building in Singapore and Gallileo in Frankfurt, Germany, slated for completion in the second half of 2025.
CICT’s financial health appears robust, with a forecasted funds from operations (FFO) to debt ratio of 7.6%-8.0% in 2025, an improvement from 6.8% to 7.2% in 2024. The REIT’s aggregate leverage decreased to 38.5% by the end of 2024, following the sale of 21 Collyer Quay in Singapore. This positions CICT to potentially increase its debt by $660m before reaching its target leverage of 40%.
The REIT’s revenue is expected to grow by 3%-8% annually over 2025-2026, driven by its 50% stake in ION Orchard and contributions from Gallileo. CICT’s net property income margin rose to 72.7% in 2024, supported by positive rental reversions and high occupancy rates across its portfolio. Retail properties reported an 8.8% rental reversion, whilst Singapore office properties achieved an 11.1% increase.
Despite rising interest costs, with debt costs projected to near 4% in 2025, CICT’s strong operating performance is expected to mitigate these pressures. The trust’s strategic initiatives aim to ensure long-term resilience and growth in its earnings.
