On 6 February 2026, CapitaLand Integrated Commercial Trust (“CICT”) released their full year result for FY2025. CICT’s FY2025 performance underscores a sustained trajectory of operational excellence, with the full-year consolidation of ION Orchard and the CapitaSpring step-up acquisition serving as primary catalysts for DPU expansion.
This inorganic growth is bolstered by a favourable macro-outlook as Management disclosed that Singapore’s retail and office pipelines remain structurally constrained through the medium term. With new retail supply concentrated in the Fringe and Outside Central Region and the Central Business District Core remaining tight due to a lack of immediate Government Land Sales commercial sites, CICT is uniquely positioned to capture outsized rental reversions.
This confluence of accretive acquisitions and a supply-starved market create a potential to translate into enhanced income visibility and a fortified distribution profile. Furthermore, the portfolio’s significant 95% FY2025 revenue concentration in the resilient Singapore market, when paired with a declining cost of debt, offers a compelling risk-adjusted return. This fundamental strength not only supports a sustainable, growing DPU but also provides a robust valuation floor, paving the way for potential Net Asset Value appreciation as the interest rate environment continues to normalize.
Disclaimer: Not financial advice. This content is provided for general informational purposes only and does not constitute financial, investment, legal, or tax advice. The information presented is based on publicly available data and estimates that may be subject to change without notice. It does not take into account your individual financial situation, investment objectives, risk tolerance, or specific needs.
Website: Financial Statements And Related Announcement::Full Yearly Results
Photo source: https://fifthperson.com/cmt-cct-merger-pros-cons/
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | +6.0% | No Update |
| Rating | Favourable | Favourable |
The DPU metric will be assessed on a half yearly basis given the information available from the business updates.
For CICT, DPU disclosed are as follows:
- Second Half of FY2025: SGD0.0596 per unit
- First Half of FY2025: SGD0.0562 per unit
- Second Half of FY2024: SGD0.0545 per unit
DPU for the second half of FY2025 has increased by 6.0% to SGD0.0596 per unit from SGD0.0562 per unit for the first half of FY2025. The improvement was due to stronger asset performance across the portfolio. The metric is Favourable.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 96.9% | 97.2% |
| Rating | Favourable | Favourable |
The occupancy metric will be assessed on a quarterly basis given the information available from the business updates.
Occupancy rate as of 31 December 2025 has decreased slightly to 96.9%. The metric remains Favourable as it is above my expected healthy occupancy rate of 95%.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 38.6% | 39.2% |
| Rating | Neutral | Neutral |
The gearing ratio metric will be assessed on a quarterly basis given the information available from the business updates.
Gearing ratio as of 31 December 2025 has decreased slightly to 38.6%. The decrease was due to lower total borrowings of SGD10.0 billion as of reporting date compared to SGD10.1 billion in the previous quarter. The metric remains Neutral.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 3.7x | 3.5x |
| Rating | Favourable | Favourable |
The interest coverage metric will be assessed on a quarterly basis given the information available from the business updates.
The interest coverage as of 31 December 2025 has improved to 3.7 times. Management has disclosed that the average cost of debt has lowered to 3.2% with the easing of interest rates, from 3.3% in the previous quarter. The metric remains Favourable 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 | 4.0 years | 3.9 years |
| Rating | Favourable | Favourable |
The debt maturity profile metric will be assessed on a quarterly basis given the information available from the business updates.
Weighted average term to maturity of their debt as of 31 December 2025 has remained relatively unchanged at 4.0 years. The metric remains Favourable as there is sufficient time to refinance their debts as they fall due. Do note that 16% of their debt are due to mature by the end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.13 | 1.09 |
| Rating | Neutral | Neutral |
The price to book ratio metric will be assessed on a quarterly basis. Although the information on net asset value is only available from the business updates on a half yearly basis, the most recent share price is available on a daily basis.
The Price to Book (“P/B”) ratio became more expensive at 1.13. This is computed using the closing share price of SGD2.42 per unit on 13 February 2026 and the net asset value of SGD2.14 per unit as of 31 December 2025. The metric remains Neutral as investors are paying a small premium for its book value.
As of 13 February 2026, the Market Capitalization is approximately SGD18,237 million.
Website: Yahoo Finance: CapitaLand Integrated Commercial Trust (C38U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2026 | 1.90% | SGD 0.046 |
| 2025 | 4.24% | SGD 0.103 |
| 2024 | 5.39% | SGD 0.130 |
| 2023 | 4.40% | SGD 0.107 |
| 2022 | 2.31% | SGD 0.056 |
| 2021 | 4.86% | SGD 0.118 |
Do note that there were several capital activities that occurred for CICT over the last 2 years, which resulted in fluctuations in dividends paid out in each calendar year. The adjustments were as below:
- Advance distribution of SGD0.0135 per unit for 1 July 2025 to 13 August 2025 paid on 18 September 2025
- Advance distribution of SGD0.0216 per unit for 1 July 2024 to 11 September 2024 paid on 17 October 2024
As an estimate, dividend for the calendar year 2025 will be recomputed to include the advance distribution paid on 17 October 2024 and exclude the advance distribution paid on 18 September 2025. The total dividend paid out for the calendar year will be adjusted to SGD0.111 per unit, which is more conservative estimate to use for forecasting.
With a closing share price of SGD2.42 per unit on 13 February 2026, this translates to a dividend yield of 4.59%. For my benchmark, a general reasonable yield would be around 4.75%. CICT’s dividend yield is slightly below my benchmark and is Neutral.
Website: Reasonable Dividend Yield 2026Q1 – 4.75%
If using dividend yield of 4.75% as a benchmark, based on the dividend of SGD0.111 per unit there is potential for CICT to see its share price decrease by 3.4% to SGD2.34 per unit.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 2.42 | – |
| 4.75% | 2.34 | -3.4% |
| 5.75% | 1.89 | -22.1% |
Interest Rate Sensitivity
The Federal Reserve on 29 January 2026 has voted to hold interest rates as its chair, Jerome Powell, defended the importance of central bank independence. The Federal Reserve said it will keep its key lending rate between 3.50% to 3.75%, stating that economic activity in the US “has been expanding at a solid pace”.
Website: US Fed holds interest rates and defends independence
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 SGD0.1158 per unit for FY2025, the impact is illustrated as below:
| Change in Interest Rates | Change in DPU (cents) | Change as % of FY2024 DPU |
|---|---|---|
| 50 bps | 0.18 | 1.5% |
| 100 bps | 0.35 | 3.0% |
| 150 bps | 0.53 | 4.5% |
| 200 bps | 0.70 | 6.0% |
Other Metrics
Tenant Profile
CICT has a well-diversified tenant profile with the top 10 tenants accounting for 16.0% of their total gross rental income and the top tenant accounting for 4.5% 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 | +6.0% | Favourable |
| Occupancy | 96.9% | Favourable |
| Gearing Ratio | 38.6% | Neutral |
| Interest Coverage | 3.7x | Favourable |
| Debt Maturity Profile | 4.0 years | Favourable |
| Price to Book Ratio | 1.13 | Neutral |
| Overall | Favourable |
Overall, CICT metrics remains Favourable. For a final look at the overarching strategy, I recommend a quick reread of the summary and overall outlook provided in the opening paragraphs.
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.
Previous Post
Website: CapitaLand Integrated Commercial Trust (SGX: C38U): 2025 Third Quarter Business Update
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