Q1 2022 in Line; Capital Allocation Upgraded to Exemplary; FVE Raised to SGD 2.66 on Better Growth

CapitaLand Integrated Commercial Trust, or CICT's, first-quarter 2022 results were largely positive, in line with our expectations. The best performance can be found in its office portfolio that is riding on the Singapore office recovery--it posted a positive 9.3% rental reversion on the back of improving occupancy rates to 92.3% this quarter from 90.4% last quarter. Notably, the leasing risk for CapitaSpring has been lowered, with occupancy rates reaching 98.5%. We see these as positive signals to further upgrade our office rental growth assumptions to reflect the strong recovery in the Singapore office market that is supported by the limited new office supply.