CapitaLand Integrated Commercial Trust’s Income Boosted By Singapore & Aussie Office Assets
SINGAPORE – The manager of CapitaLand Integrated Commercial Trust (CICT) revealed that its distributable income increased by 4.8 percent to S$355.1 million in H2 2022 on an annual basis thanks to higher rental income from recently purchased commercial properties, particularly office buildings, reported Mingtiandi on Monday evening (6 February, SGT).
The Singapore-listed real estate investment trust (S-REITs) said its net property income (NPI) rose by 13.1 percent year-on-year to S$541.7 million, while gross revenue leapt 14.4 percent to S$754.1 million.
One factor behind the improved performance was the purchase of a 70 percent stake in CapitaSky, a 29-storey Grade A office tower in the city-state’s downtown core that was previously known as 79 Robinson Road. Another reason was the acquisition of two office buildings in Sydney. All the aforementioned deals were completed in H1 2022.
However, the stellar financial performance was partially offset by higher operating costs and the S$340 million sale of JCube mall to CapitaLand during the 1st half of last year.
Four months later after the announcement of JCube’s divestment in January 2022, CICT announced the purchase of a 70 percent interest in CapitaSky from CapitaLand Investment and its Japanese joint venture (JV) partners, Tokyo Tatemono and Mitsui.
In particular, CICT teamed up with Temasek-backed CapitaLand Open End Real Estate (COREF) to buy CapitaSky for S$1.26 billion in all, with the latter agreeing to hold a 30 percent stake in the Grade A office building in Singapore.
Aside from that, CapitaLand Integrated Commercial Trust completed the acquisition of two Sydney office buildings – 66 Goulburn Street and 100 Arthur Street – for a total of A$672 million. The consideration consisted of A$330.7 million in cash, as well as the assumption of debt related to the two commercial properties.
