CapitaLand Integrated Commercial Trust (C38U) H1 2026 earnings summary

Executive summary

• Achieved record first half 2026 results with gross revenue of S$846.8 million (+7.5% YoY), net property income of S$630.5 million (+8.7% YoY), and distributable income of S$466.7 million (+13.3% YoY), driven by strategic acquisitions, divestments, and resilient portfolio performance.

• Distribution per unit rose 7.1% year-over-year to 6.02 cents, despite an enlarged unit base from equity fundraising.

• Portfolio occupancy remained high at 95.6%, with retail at 97.7% and office at 94.4%, supported by positive rent reversions and healthy tenant sales.

• Major portfolio moves included the acquisition of Paragon, divestment of Bukit Panjang Plaza, and announced sale of Asia Square Tower 2.

• Over one million square feet of leases were renewed or newly committed, achieving positive rental reversions of 4.0% for retail and 6.5% for office.

Financial highlights

• Net property income rose 8.7% year-over-year to S$630.5 million for 1H 2026.

• Distributable income increased 13.3% year-over-year to S$466.7 million; DPU up 7.1% to 6.02 cents.

• Gross revenue grew 7.5% to S$846.8 million, mainly from CapitaSpring and Gallileo contributions.

• Net asset value per unit increased to S$2.15 as of 30 June 2026.

• Aggregate leverage reduced to 37.4% from end-2025, with average cost of debt at 2.9%.

Outlook and guidance

• Growth drivers for H2 2026 include full contribution from Paragon, continued Gallileo income, and positive rental reversions.

• AEI completions at Tampines Mall, Lot One, and Plaza Singapura expected to contribute from H2 2026 and early 2027.

• Interest expense expected to remain stable or inch lower; utilities cost hedged through mid-2027.

• DPU growth for 2027 expected to be supported by organic rental reversions, AEI, and full-year Paragon contribution.

• Portfolio remains supported by Singapore’s positive economic outlook, moderate inflation, and resilient business activity.