CapitaLand Integrated Commercial Trust (C38U) Q3 2024 earnings summary

Executive summary

• Net property income for YTD Sep 2024 rose 5.4% YoY to S$872.1M, driven by higher gross rental income and lower operating expenses, despite the absence of income from Gallileo since February 2024.

• Completed acquisition of a 50% interest in ION Orchard and ION Orchard Link, adding a high-quality asset to the portfolio.

• Portfolio committed occupancy stood at 96.4% as of 30 Sep 2024, with a WALE of 3.5 years.

• All borrowings due in 2024 were refinanced, and S$200M fixed rate green notes were issued at 3.3% due 2035.

Financial highlights

• 3Q 2024 gross revenue was S$397.9M, up 1.7% YoY; net property income was S$289.8M, up 5.4% YoY.

• YTD Sep 2024 gross revenue reached S$1,189.8M, up 2.0% YoY.

• Retail portfolio rent reversion was +9.2% YTD Sep 2024; office portfolio rent reversion was +11.7%.

• Aggregate leverage was 39.4% as of 30 Sep 2024, with 76% of borrowings on fixed interest rates.

Outlook and guidance

• Focus remains on proactive portfolio management to drive higher occupancy and rents, and manage operating costs.

• Limited new retail and office supply in Singapore is expected to support resilient rents.

• Macroeconomic outlook for Singapore remains positive, with 2024 GDP growth forecast at 2.0% to 3.0%.