CICT net property income rises 13.8% in Q3 as Paragon contribution kicks in
CapitaLand Integrated Commercial Trust posted a 13.8 per cent year-on-year rise in net property income to S$334.9 million for the third quarter, driven by the first full quarter of contributions from the Paragon mall and medical complex. The gains were partly offset by the disposal of Asia Square To
CapitaLand Integrated Commercial Trust's net property income rose 13.8 per cent year-on-year to S$334.9 million in the third quarter, as Asia's biggest listed REIT by market capitalisation saw the first full quarter of contributions from Singapore's Paragon complex help offset income lost through asset sales.
Gross revenue grew 15 per cent year-on-year to S$464.5 million in the three months to September, the SGX-listed trust's manager said on Thursday in a business update. Nine-month net property income increased 10.4 per cent to S$965.4 million on revenue of S$1.3 billion, up 10 per cent.
CICT completed its S$3.9 billion purchase of the Paragon mall and medical complex on Orchard Road on 1 July. It followed up with the sale of Asia Square Tower 2 in Marina Bay to Malaysia's IOI Properties for S$2.48 billion on 17 September.
The stronger quarterly performance was largely driven by contributions from Paragon, Frankfurt's Gallileo tower and the step-up acquisition of CapitaSpring, the Temasek-controlled manager said. The gains were partly offset by the Asia Square 2 disposal and the sale of Bukit Panjang Plaza to US developer Hines in February.
The Paragon acquisition gave CICT a 714,915 square foot (66,418 square metre) integrated development with upscale retail and medical tenants. The purchase carried a 3.9 per cent acquisition yield, compared with the 3 per cent exit yield on Asia Square 2, as the trust recycled capital into a higher-yielding asset.
Leasing performance strengthened, with Singapore office rental reversions reaching 7.1 per cent for the first nine months, up from 6.5 per cent at the half-year. Retail reversions increased to 4.6 per cent from 4 per cent. Office occupancy increased to 95.4 per cent at the end of September from 94.4 per cent three months earlier, with Singapore reaching 97.4 per cent from 96.4 per cent.
CICT began a S$160 million enhancement of Plaza Singapura and The Atrium at Orchard during the third quarter, targeting completion in the final quarter of 2028. The trust also completed its S$24 million Tampines Mall enhancement in Q3, and a S$37 million enhancement at Lot One Shoppers' Mall is scheduled for completion in the first quarter of 2027.
