CICT third-quarter net property income climbs 13.8%
Revenue increased 15 per cent to S$464.5 million, with acquisitions and an upgraded German property supporting earnings.
CapitaLand Integrated Commercial Trust (CICT) recorded S$334.9 million in net property income for the quarter ended September, a year-on-year gain of 13.8 per cent, its manager reported on Oct 29. Quarterly revenue reached S$464.5 million, up 15 per cent.
The manager attributed most of the growth to Paragon, acquired in July; Gallileo in Germany after asset enhancement works; and a larger holding in CapitaSpring. CICT paid S$1 billion for the remaining 55 per cent interest in CapitaSpring’s office and retail component.
Sales of Bukit Panjang Plaza and Asia Square Tower 2 partly offset those contributions. The Asia Square Tower 2 disposal was completed on Sep 17 and yielded about S$2.45 billion in net proceeds.
Across the nine months, net property income totalled S$965.4 million, an increase of 10.4 per cent from a year earlier. Revenue over that period was S$1.3 billion, up 10 per cent.
Aggregate leverage increased to 39.7 per cent at end-September from 37.4 per cent at end-June. Borrowings rose to S$11.1 billion from S$9.9 billion over the same period, while committed occupancy improved to 96.1 per cent from 95.6 per cent.
Retail performance weakened despite the overall earnings increase. Quarterly retail revenue fell to S$143.5 million from S$151.7 million a year earlier, while retail net property income dropped to S$99.6 million from S$108.5 million. For the year to date, rent reversions were positive at 7.1 per cent for offices and 4.6 per cent for retail properties.
