CapitaLand Integrated Commercial Trust (CICT) reported distributable income of S$466.7 million for the six months ended Jun 30 2026, up 13.3 year-on-year, as fresh contributions from the recently acquired CapitaSpring stake and the near-completed Gallileo refurbishment offset the loss of income from divested assets and higher unit count.
Gross revenue rose 7.5 YoY to S$846.8 million, while net property income climbed 8.7 YoY to S$630.5 million. The trust declared a distribution per unit (DPU) of 6.02 Singapore cents for 1H 2026, a 7.1 YoY increase. The payout comprises an advanced distribution of 3.98 cents disbursed on Jun 8 and a final tranche of 2.04 cents to be paid on Sept 25 to unitholders on record as at Aug 20. At the Jun 30 closing price of S$2.37, the annualised distribution yield stood at 5.1%.
Retail revenue benefited from 4.0 per cent positive rental reversions and a portfolio occupancy rate of 97.7 per cent, supported by tenant remixing at malls such as Funan and Raffles City Singapore. Office assets recorded 6.5 per cent positive rental reversions and 94.4 per cent occupancy, helped by new and renewed leases with financial, legal and technology firms at properties including CapitaSpring and Six Battery Road. Overall portfolio occupancy remained high at 95.6 per cent, with more than one million square feet of space renewed or freshly committed during the half.
On the flip side, distribution income from joint ventures fell 19.5 YoY to S$16.7 million after CICT acquired the remaining 55 per cent of CapitaSpring in Aug 2025, reducing the property’s JV contribution. The February 2026 divestment of Bukit Panjang Plaza also trimmed top-line growth, though this was offset by income from Gallileo in Frankfurt, which is now largely handed over to tenants after asset enhancement works.
CICT is pressing ahead with multiple asset enhancement initiatives (AEIs). Works at Tampines Mall are slated for completion in 3Q 2026, while upgrades at Lot One Shoppers’ Mall and Raffles City Tower are scheduled to finish in 1Q 2027 and 4Q 2026 respectively. Preparatory works for refurbishments at Capital Tower, Plaza Singapura and The Atrium@Orchard will begin in 3Q 2026. The trust also completed the S$2.1 billion acquisition of Paragon on Jul 1 and is part of a consortium developing a mixed-use project at Hougang Central.
Chief executive and executive director Tan Choon Siang said the first-half performance demonstrated the resilience of CICT’s diversified portfolio, noting that healthy leasing demand and recent acquisitions underpinned income growth despite a challenging macro backdrop. He added that lease commencements at Gallileo, the newly acquired Paragon mall and continued positive rental reversions, together with lower financing costs, should sustain earnings momentum. Tan said the trust’s aggregate leverage of 37.4 per cent and 78 per cent fixed-rate debt profile provide flexibility to fund ongoing AEIs and future opportunities while managing refinancing risk.