CICT Q3 NPI rises 13.8% to S$334.9 million on contributions from Paragon and other acquisitions

[SINGAPORE] The manager of CapitaLand Integrated Commercial Trust ( CICT ) on Thursday (Oct 29) posted a 13.8 per cent increase in net property income (NPI) to S$334.9 million for the third quarter ended September.

Revenue for Q3 rose 15 per cent year on year to S$464.5 million. For the nine-month period, the real estate investment trust’s (Reit) NPI grew 10.4 per cent on the year to S$965.4 million, while revenue rose 10 per cent to S$1.3 billion.

The increase was largely driven by contributions from Paragon, which the Reit acquired in July this year; Gallileo, its commercial property in Germany, following asset enhancement works; and its increased stake in CapitaSpring.

CICT bought over the 55 per cent interest in the office and retail component of CapitaSpring that it did not already own for S$1 billion.

The increase was partially offset by the divestments of Bukit Panjang Plaza and Asia Square Tower 2, said the manager in its Q3 business update. The Reit completed the divestment of Asia Square Tower 2 on Sep 17, generating net sales proceeds of about S$2.45 billion.

CICT’s aggregate leverage stood at 39.7 per cent as at end-September, up from 37.4 per cent as at end-June, while portfolio weighted average lease to expiry was 3.1 years. The Reit’s total borrowings stood at S$11.1 billion, up from S$9.9 billion as at end-June.

Committed occupancy rose to 96.1 per cent as at end-September versus 95.6 per cent as at end-June. Its retail occupancy rate remained largely stable at 97.3 per cent as at Sep 30, with suburban and downtown malls recording occupancy rates of 99.1 per cent and 96 per cent, respectively.

For the year to date, CICT recorded positive rent reversions of 7.1 per cent for its office portfolio and 4.6 per cent for its retail portfolio. Within the retail portfolio, suburban malls recorded rent reversion of 4.6 per cent, while downtown malls registered 4.5 per cent.

Revenue from its retail portfolio declined to S$143.5 million for Q3 from S$151.7 million in the year-ago period, while NPI fell to S$99.6 million from S$108.5 million. For the nine-month period, revenue dropped to S$435.3 million and NPI fell to S$310.2 million.

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The decline came despite healthy tenant sales across the portfolio, which was driven by seasonal promotions and new store openings, such as Italian restaurant Osteria Mozza at Ion Orchard and frozen yogurt shop Yochi at Westgate. Excluding Paragon, tenant sales grew 2 per cent for the nine-month period.

Asset enhancement works are progressing across its portfolio, including Lot One Shoppers’ Mall, which is slated for completion in the first quarter of 2027, and Plaza Singapura and The Atrium@Orchard, which are expected to be completed in the fourth quarter of 2028.

At Tampines Mall, CICT completed its asset enhancement works in Q3 2026, with about 97 per cent of the revamped space either committed or in advanced negotiations. The revamp, which cost about S$24 million, has introduced 16 new brands to the mall, including Sephora and Goldheart. The manager expects a return on investment of about 7 per cent.

Meanwhile, construction works for the commercial component of the Hougang Central development is expected to start in 2027, with completion targeted for 2030 or 2031. The project has an estimated development cost of S$1.1 billion.

Units of CICT ended Wednesday 0.4 per cent or S$0.01 lower at S$2.26.