CICT Earnings: Net Property Income Grows on Higher Rental and Margin Expansion

CapitaLand Integrated Commercial Trust’s first-half 2024 net property income rose 5.4% year on year, driven by higher rental income from existing properties, as well as better net property income margins from lower utilities expenses and cost savings from the new property management agreement. These were slightly offset by the absence of income from Gallileo, which is currently undergoing an asset-enhancement initiative. As the performance was broadly in line with our expectations, we retain our fair value estimate of SGD 2.32 per share and our forecasts are largely unchanged. Based on its last closing price, we think the trust is undervalued and trades at a 2024 dividend yield of 5.3%. We continue to like it for its portfolio of high-quality office and retail properties in Singapore.