CapitaLand Integrated Commercial Trust (C38U) Q1 2025 earnings summary

Executive summary

• Q1 2025 gross revenue and NPI declined marginally due to the divestment of 21 Collyer Quay, but rose 1.1% and 1.4% respectively on a like-for-like basis, reflecting portfolio strength.

• Portfolio NPI margin remained stable at 74%, with higher signing rents for new and renewed leases in both retail and office segments.

• Portfolio occupancy dipped slightly to 96.4% due to lease expiries, while aggregate leverage remained low at 38.7% and average cost of debt decreased to 3.4%.

• Rental reversions were strong: retail at 10.4% and office at 5.4%.

Financial highlights

• NPI for 1Q 2025 was S$291.5M, down 0.8% year-over-year but up 1.4% on a like-for-like basis; gross revenue was S$395.3M, down 0.8% but up 1.1% like-for-like.

• Average cost of debt dropped to 3.4%, aided by refinancing and a new SGD 150 million seven-year fixed rate note at 3.08%.

• Interest coverage ratio improved to 3.2x; term to debt maturity extended to 4.2 years.

• Retail tenant sales, excluding ION, were down 0.5% year-over-year, partly due to a high base effect.

Outlook and guidance

• Positive rent reversions from leases signed in FY 2023 and FY 2024 expected to support FY 2025 revenue.

• Retail rental reversions expected to moderate to mid- to mid-high single digits for the rest of 2025; office rental reversions guided to remain in the low- to mid-single digits.

• Full-year income contribution from ION Orchard and progressive contribution from IMM Building AEI completion anticipated.

• Management remains cautious but optimistic, focusing on organic growth, asset enhancement, and disciplined capital management.