CICT Sees Higher Revenue From Office Assets

SINGAPORE – CapitaLand Integrated Commercial Trust (CICT) revealed that its gross revenue from its office properties surged by around 31 percent to S$128.2 million during the first quarter of the year compared to S$97.6 million during the same period a year ago, according to its Q1 2023 Business Updates published on the local bourse last week.

Over the same period, the Singapore-listed real estate investment trust’s (S-REIT) net property income (NPI) from its office assets increased by about 25.5 percent to S$92.9 million in Q1 2023 from S$74.0 million in Q1 2022. Also, the rental reversion of its office assets edged up by 4.2 percent year-to-date in March 2023.

Meanwhile, the revenue of CICT’s mixed-use commercial properties grew by about 16 percent year-on-year from S$99.5 million to S$115.5 million in Q1 2023, while NPI climbed by around 13 percent from S$72.5 million to S$82.2 million on an annual basis.

The trust said Q1 2023’s financial performance was “boosted by full quarter contributions from acquisitions completed in H1 2022 and higher gross rental income from existing properties”. However, it was partially offset by higher operating expenses largely due to utilities and disposal of JCube in March 2022.

Aside from that, CapitaLand Integrated Commercial Trust disclosed that the committed occupancy rate of its office assets across the globe rose from 94.4 percent in Q4 2022 to 94.8 percent during the first three months of the year. In particular, that in Singapore inched up from 96.2 percent to 96.7 percent.

At the same time, the committed occupancy of all of its mixed-use commercial properties increased from 97.1 percent to 97.5 percent.

In addition, CICT said that the weighted average lease expiry (WALE) of its office assets and mixed-use commercial properties remained stable at 3.7 years and 5.4 years respectively.

Furthermore, based on office leasing enquiries received by the trust, the top 3 sectors by office space requirements (from 1,300 sq ft to 43,000 sq ft) were banking, insurance & financial services; IT, media & telecommunications; as well as maritime & logistics.

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