CICT’s Q1 NPI up 7.9% to S$314 million; Reit unveils S$160 million revamp of Plaza Singapura, The Atrium@Orchard

[SINGAPORE] CapitaLand Integrated Commercial Trust posted on Friday (Apr 24) a 7.9 per cent rise in net property income (NPI) to S$314.4 million for its first quarter ended Mar 31, 2026, from S$291.5 million in the previous corresponding period.

The real estate investment trust’s (Reit) manager also announced a S$160 million asset enhancement at Plaza Singapura and The Atrium@Orchard.

For the first quarter, revenue increased 8 per cent to S$426.7 million from S$395.3 million a year earlier. This was mainly due to the step-up acquisition to a 100 per cent interest in CapitaSpring and the income contribution from Gallileo, a prime commercial project in Frankfurt, Germany.

CICT’s retail portfolio achieved a positive rent reversion of 4.4 per cent, and the office portfolio recorded a positive reversion of 6.1 per cent.

Portfolio occupancy stood at 95.2 per cent as at Mar 31, 2026, 1.7 per cent lower than the previous quarter. The manager noted that lower occupancy was largely due to CQ @ Clarke Quay, Funan (office) and Main Airport Center.

Its weighted average lease expiry stood at three years and was stable on the quarter.

On the capital management front, aggregate leverage was 38.5 per cent with average cost of debt at 2.9 per cent.

Based on the group’s borrowings, including proportionate share of borrowings in joint ventures as at March, the manager noted that CICT had a well-spread debt maturity profile.

On Monday, the manager announced a proposed acquisition of a 100 per cent interest in Paragon for S$3.9 billion.

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This move involves redeploying proceeds from the sale of Asia Square Tower 2 (AST2), which was divested at an agreed value of S$2.48 billion. The manager expects the Paragon acquisition to provide a net yield of 3.9 per cent, compared with AST2’s exit yield of 3 per cent.

The asset enhancement of Plaza Singapura and the adjacent Atrium@Orchard aims to enhance the properties’ position along Orchard Road through upgraded infrastructure and a refreshed tenant mix catering to both locals and tourists.

The work, scheduled to take place from the third quarter of 2026 to the fourth quarter of 2028, will be carried out in phases, with the mall staying open, CICT said in its first-quarter business update on April 24.

Units of CICT closed S$0.01 or 0.4 per cent lower at S$2.48 on Thursday.