CapitaLand Integrated Commercial Trust

CICT’s first half 2026 results showed gross revenue of $846.8 million, up 7.5% year on year; NPI of $630.5 million, up 8.7%; distributable income of $466.7 million, up 13.3%; and DPU of $0.0602, up 7.1%. Occupancy was 95.6%, retail rent reversions were 4.0%, office rent reversions were 7.6%, NAV rose to $2.15 from $2.14, aggregate leverage fell to 37.4% from 38.5%, and average cost of debt remained 2.9%. Management also said units in issue rose 5.8% to about $7.73 billion due largely to the private placement for Paragon. For H2, they expect the completed Paragon acquisition, continued Gallileo contribution, further positive rent reversions, and progress from Tampines Mall and Lot One AEIs to support growth; Asia Square Tower 2 remains on track for completion in H2.

CEO Choon-Siang Tan framed the half-year as CICT’s strongest ever and said the result reflects disciplined portfolio reconstitution, active asset management and capital management. He stressed that this is probably not the peak, pointing to Paragon not being included in H1 numbers, Gallileo’s fuller contribution in H2, ongoing positive reversions, and AEI completions that should add to earnings. His tone was confident but measured, repeatedly noting that growth should continue while avoiding over-optimism because some assets will still have downtime during upgrades.

CFO Wong Mei Lian emphasized the balance sheet and funding profile: leverage moved down to 37.4% from 38.5%, average cost of debt stayed at 2.9%, and debt maturities run out to 2035. She said H2 finance costs should be helped by the Paragon acquisition financing and by floating-rate loans ahead of Asia Square Tower 2 completion, with room for the average cost of debt to inch down slightly. When asked about electricity costs, management said they are using new hedging contracts and expect significant utility savings next year, with tariff rates similar to the group’s lower procurement rates.

Analysts focused on whether the strong half was a peak, how much room remained in the growth story, and whether slowing suburban sales or softer retail reversions signaled caution. Management said H1 was the best first half ever, but not necessarily the peak, because Paragon was not yet fully in the numbers and Gallileo, AEIs and rental reversions should keep contributing. On suburban sales, management said Q2 softened due to lower tourist arrivals and slightly weaker consumer sentiment, but they still expect the full year to hold up. On financing, they said costs are stable for now, with limited room for rates to fall much further, though better spreads and hedging should help.