On 28 October 2025, CapitaLand Integrated Commercial Trust (“CICT”) released their third quarter business update for FY2025, which reflected a broadly stable operating performance. Portfolio fundamentals remained resilient, supported by an improvement in committed occupancy. Although the trust’s gearing ratio edged higher, its interest coverage ratio also strengthened, suggesting lower effective borrowing costs and enhanced earnings capacity to service financing obligations.
CICT may further benefit from shifting regional travel patterns. According to a Business Times article dated 21 November 2025, heightened diplomatic tensions between China and Japan have led to a wave of trip cancellations to Japan. In response, Chinese outbound travellers have begun redirecting their travel plans, resulting in a surge in new bookings to alternative destinations. Singapore and South Korea recorded increases of up to 15% in new bookings over the recent November period, while Thailand, Malaysia, and Vietnam saw week-on-week growth of up to 11%. This reallocation of tourism flows could translate into higher footfall and retail sales across CICT’s Singapore retail assets.
Do note that there is a notable decline in the proportion of borrowings hedged at fixed interest rates, which raises CICT’s sensitivity to interest rate movements. This shift may signal management’s expectations of a continued easing interest rate environment in the coming quarters, making it less compelling to lock in funding costs at current levels.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only. It does not take into account your individual needs, investment objectives and specific financial circumstances.
Website: General Announcement::3Q 2025 Business Updates
Website: Japan tourism faces US$1.2 billion hit on China rift; Singapore sees new bookings rise
Photo source: https://fifthperson.com/cmt-cct-merger-pros-cons/
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | No Update | +3.1% |
| Rating | Favorable | Favorable |
Based on the announcement on 28 October 2025, DPU was not included in the business update for the third quarter of FY2025.
For CICT, DPU disclosed are as follows:
- First Half of FY2025: SGD0.0562 per unit
- Second Half of FY2024: SGD0.0545 per unit
The metric was Favorable in the previous quarter as DPU for the first half of FY2025 has increased by 3.1% to SGD0.0562 per unit from SGD0.0545 per unit for the second half of FY2024.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 97.2% | 96.3% |
| Rating | Favorable | Favorable |
Occupancy rate as of 30 September 2025 has increased to 97.2%. The metric remains Favorable as it is above my expected healthy occupancy rate of 95%.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 39.2% | 37.9% |
| Rating | Neutral | Favorable |
Gearing ratio as of 30 September 2025 has increased to 39.2%. The increase was due to additional drawdowns during the quarter, with total borrowings of SGD10.1 billion as of reporting date compared to SGD8.8 billion in the previous quarter. The metric shifted towards Neutral as it is now closer to my threshold of 40.0%.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 3.5x | 3.3x |
| Rating | Favorable | Favorable |
The interest coverage as of 30 September 2025 has improved to 3.5 times. Management has disclosed that the average cost of debt is lower with the easing of interest rates. The metric remains Favorable as the interest coverage is above my preference of 3.0 times. The Group did not issue any hybrid securities; therefore, the adjusted interest coverage is the same as interest coverage.
Debt Maturity Profile
| Metrics | Current | Previous |
|---|---|---|
| Debt Maturity Profile | 3.9 years | 4.0 years |
| Rating | Favorable | Favorable |
Weighted average term to maturity of their debt as of 30 September 2025 has shortened to 3.9 years. The metric remains Favorable as there is sufficient time to refinance their debts as they fall due. Do note that 9% of their debt are due to mature by the end of FY2026.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.09 | 1.06 |
| Rating | Neutral | Neutral |
Based on the announcement on 28 October 2025, net asset value (“NAV”) was not included in the business update for the third quarter of FY2025.
The Price to Book (“P/B”) ratio became more expensive at 1.09. This is computed using the closing share price of SGD2.33 per unit on 3 December 2025 and the net asset value of SGD2.13 per unit as of 30 June 2025. The metric remains Neutral as investors are paying a small premium for its book value.
As of 3 December 2025, the Market Capitalization is approximately SGD17,559 million.
Website: Yahoo Finance: CapitaLand Integrated Commercial Trust (C38U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 4.40% | SGD 0.103 |
| 2024 | 5.60% | SGD 0.130 |
| 2023 | 4.58% | SGD 0.107 |
| 2022 | 2.40% | SGD 0.056 |
| 2021 | 5.05% | SGD 0.118 |
With the rights issuance in September 2024, CICT have given an additional distribution of SGD0.0216 per unit for the existing holders in October 2024. Therefore, the amount to be paid out in March 2025 is not the full amount for the first half of FY2025. Do note as well that there is a private placement in August 2025, which resulted in the recent distribution to cover a period up to 13 August 2025.
For a conservative estimate, the dividend paid out for the calendar year 2024 from operations will be used, which amounts to SGD0.1084 per unit.
With a closing share price of SGD2.33 per unit on 3 December 2025, this translates to a dividend yield of 4.65%. For my benchmark, a general reasonable yield would be around 4.25%. CICT’s dividend yield is above my benchmark and is Favorable.
Website: Reasonable Dividend Yield 2025Q4 – 4.25%
If using dividend yield of 5.25% as a benchmark, based on the dividend of SGD0.1084 per unit there is potential for CICT to see its share price drop by another 11.4% to SGD2.06 per unit. This may occur should the interest rates and yield of safe assets increase.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 2.33 | – |
| 5.25% | 2.06 | -11.4% |
| 6.25% | 1.73 | -25.6% |
Interest Rate Sensitivity
The Federal Reserve on 29 October 2025 approved its second straight interest rate cut, though Chair Jerome Powell rattled markets when he threw doubt on whether another reduction is coming in December. This lowers the benchmark overnight borrowing rate to a range of 3.75% to 4.00%.
Website: Fed cuts rates again, but Powell raises doubts about easing at next meeting
CICT have disclosed that every potential +100 bps in interest rates on interest rates is estimated to reduce DPU by 0.35 Singapore cents per annum. With DPU of SGD0.1088 per unit for FY2024, the impact is illustrated as below:
| Change in Interest Rates | Change in DPU (cents) | Change as % of FY2024 DPU |
|---|---|---|
| 50 bps | 0.18 | 1.6% |
| 100 bps | 0.35 | 3.2% |
| 150 bps | 0.53 | 4.8% |
| 200 bps | 0.70 | 6.4% |
Other Metrics
Tenant Profile
CICT has a well-diversified tenant profile with the top 10 tenants contributing to 16.7% of their total gross rental income and the top tenant accounting for 4.6% during the period, providing income diversity to the portfolio.
Heartland Living
The Singapore government intend for every town to have a shopping mall available and successful. Such that they are willing to have measures to help support heartland businesses financially. This means that as an investor of retail properties, you can be assured that there will almost always be tenants for your shopping malls, which translates to rental income. It may still be subjected to capital depreciation and appreciation when exposed to economic conditions, such as the current high interest rates. However as of now, your interests are in line with the government.
Website: The Bull Case For Investing In Singapore Retail Property
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | No Update | Favorable |
| Occupancy | 97.2% | Favorable |
| Gearing Ratio | 39.2% | Neutral |
| Interest Coverage | 3.5x | Favorable |
| Debt Maturity Profile | 3.9 years | Favorable |
| Price to Book Ratio | 1.09 | Neutral |
| Overall | Favorable |
Overall, CICT metrics remain Favorable. Although the higher gearing ratio could imply in an increase in financing costs, this impact may be mitigated by the uplift in occupancy rates, which supports stronger rental income generation. This dynamic is reflected in the improvement in the interest coverage ratio, indicating enhanced earnings capacity to absorb the trust’s financing obligations.
Background
CICT is the first and largest real estate investment trust (“REIT”) listed on Singapore Exchange Securities Trading Limited (“SGX ST”). It made its debut on SGX ST as CapitaLand Mall Trust (“CMT”) in July 2002 and was renamed CICT in November 2020 following the merger with CapitaLand Commercial Trust (“CCT”).
CICT owns and invests in quality income producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore.
CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited (“CLI”), a leading global real estate investment manager with a strong Asia foothold.
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Website: CapitaLand Integrated Commercial Trust (SGX: C38U): 2025 Half Year Result
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