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Is Capitaland Integrated Commercial Trust A Good Buy In 2025? [Fundamental Analysis]

  • Writer: Daniel Lee
    Daniel Lee
  • 7 minutes ago
  • 3 min read

In this article, we'll conduct a fundamental analysis and review of Capitaland Integrated Commercial Trust and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having high capital preservation ability.


Information Is Accurate Up To March 2025


Business Description

CapitaLand Integrated Commercial Trust (CICT) is an Office and commercial REIT that was incepted in 2020 via a merger between CapitaLand Commercial Trust and CapitaLand Mall Trust. It owns properties in retail, office, and integrated developments.  



What I Like About CICT:

  • Solid and strong sponsor which should provide strong support in times of distress and yield accretive acquisition opportunity. The management has also demonstrated strong capabilities in their capital recycling efforts over the years.

  • The majority of the CICT portfolio is in Singapore and is of significantly high quality, which provides both a stable rental income and minimal exposure to foreign exchange rate risk.


  • Clear mandate on portfolio allocation with a maximum cap of 20% exposure to foreign assets in developed markets with similar risk to Singapore.



What I Do Not Like About CICT:

  • Their overseas exposure, while limited, is a bit questionable in my opinion. That said, given the limitations in the Singapore market, having offshore properties may be a double-edged sword.



Updates From Recent Performance (FY 2024)

General Comments:

  • Gross Revenue rose 1.7% while Net Property Income climbed 3.4% led by improved gross rental income across most properties and the partial contribution from the recent acquisition of ION Orchard (completed on 30 October 2024)


  • Aggregate leverage decreased by 1.4% from the debt repayment via the divestment capital of 21 Collyer Quay. The cost of debt increased by 0.2% to 3.6%.


  • Portfolio valuation increased by 6.2% due to the combination of the positive performance of Singapore assets and the acquisition of ION Orchard. The positive performance is offset by the continued declining valuations of their offshore properties.


Positive Headwinds:

  • The acquisition of 50% interest in ION Orchard will provide another growth avenue in FY 2025. Completion of ongoing Asset Enhancement Initiatives in Singapore & Germany is set to improve performance beyond 2H 2025.


Negative Headwinds:

  • Increasing uncertainty revolving around the global economy might result in a tightening of wallets for both consumers and businesses which may affect CICT’s performance.



Download Full Report On Telegram

and continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for Capitaland Integrated Commercial Trust:

*Join the channel → click on the channel name → under files → download the report you want!


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Disclaimer:

This article is meant to be the opinion of the author

This article is for information purposes only

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore


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