CICT net property income rises 8.7%; rent reversions positive at 6.5% for office and 4% for retail

For the first half of the year, CapitaLand Integrated Commercial Trust (CICT) saw gross revenue rising 7.5% y-o-y to $846.8 million while net property income increased by 8.7% to $630.5 million.

This was driven by income contributions from CapitaSpring’s commercial component in Singapore and the Gallileo commercial property in Germany, though partially offset by the sale of Bukit Panjang Plaza, the trust said on Aug 12.

CICT had acquired the remaining 55% stake in CapitaSpring in August last year. Meanwhile, Gallileo, located in Frankfurt’s CBD, has been largely handed over to tenants since its asset enhancement initiatives were completed. As for Bukit Panjang Plaza, the mall was divested to Hines this February for $428 million.

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Portfolio occupancy stood at 95.6% as at the end of June. This was led by retail at 97.7%, though it slipped by 0.1 percentage point q-o-q. Integrated developments were 95.5% occupied, down 0.5 percentage point. Offices saw improved occupancy of 94.4%, up 0.7 percentage point q-o-q.

Over 1 million sq ft of leases were renewed or newly committed during the first half of this year, achieving positive rental reversions of 6.5% for office and 4% for retail.

The rent reversions were calculated based on average committed rents for incoming leases, versus the average rents of expiring leases in the Singapore portfolio.

Tenant retention rates came in at 83.9% for retail properties in Singapore, and 70.8% for offices in Singapore, Germany and Australia.

Within the retail portfolio, CICT introduced new-to-market and first-in-portfolio concepts including a mix of F&B and lifestyle offerings.

These include plush collectible brand Softopia’s first Southeast Asia flagship at Funan, as well as homegrown restaurant Chimichanga and Cantonese congee specialist Mui Kee at Raffles City Singapore. CQ @ Clarke Quay also welcomed Zouk Group's all-day lifestyle destination concept, Rally Clubhouse.

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In the office segment, CICT said demand remained healthy across a diverse range of occupiers.

It secured new and renewal office leases from tenants in sectors such as banking, insurance and financial services, legal and IT, and telecommunications.

Notable new or renewal leases signed include PGIM (Singapore) and Simpson Spence Young LLP at CapitaSpring, and Cambiaso Risso Asia at Six Battery Road.

As for its asset enhancement initiatives (AEIs), CICT noted that it made “steady progress” on the ongoing and planned upgrades.

At Tampines Mall, the AEI is “progressing well”, with committed occupancy (including leases under advanced negotiation) at around 96% for the AEI space and completion stated for the third quarter of 2026.

New openings at Tampines Mall so far have included Casa Vostra, Yeah Gelato, Judydoll, Elemis, and Shiseido. Additional brands — such as Chanel, Dior, Sephora, Yves Saint Laurent, Meilleur Moment, Paris Baguette, Braun Buffel, and Boarding Gate — are set to open progressively in the second half of 2026.

At Lot One Shoppers’ Mall in Choa Chu Kang, the AEI is on track for completion in the first quarter of 2027, while upgrading works at Raffles City Tower are expected to complete in the fourth quarter of 2026.

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CICT said it is preparing to start AEIs at Capital Tower, as well as Plaza Singapura and The Atrium@Orchard in the third quarter of 2026.

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