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CapitaLand Integrated Commercial Trust C38U

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Morningstar’s Analysis

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Currency in SGD
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5-Star Price

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Economic Moat

PREMIUM

Capital Allocation

PREMIUM

CICT Improves Financial Position; No Change to our FVE

Lorraine Tan, CFA Regional Director

Analyst Note

| Lorraine Tan, CFA |

Narrow-moat CapitaLand Integrated Commercial Trust, or CICT, announced that they had made payment for the redemption in full of a SGD 100 million Medium Term Note, or MTN, that matured on Aug. 13, 2021. The MTN was a fixed rate note with an interest rate of 2.96% per year. Accordingly, we expect slight improvements to CICT’s financial position with aggregate leverage improving from 40.5% to 40.1%. In addition, we expect borrowing costs to decline moving forward as we observe that CICT had been refinancing their existing debt this year via issuance of MTNs at a lower borrowing cost--with two MTNs issued at an interest rate of 2.1% and 2.15% whilst redeeming two other MTNs that carry interest rates of 2.98% and 2.27%.

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Company Profile

Business Description

CapitaLand Integrated Commercial Trust, or CICT, was established following the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust that was effective in October 2020. The trust has a diversified portfolio of 24 properties, which includes offices (mainly in the Central Business District), retail malls (includes urban and suburban malls), and integrated development. Most of its properties are located in Singapore except for two offices that are in Frankfurt, Germany. The trust is externally managed by CapitaLand Integrated Commercial Trust Management Limited, and parent CapitaLand retains a 29% stake in CICT.

Contact
168 Robinson Road, No. 30-01 Capital Tower
Singapore, 068912, Singapore
T +65 67132888
Sector Real Estate
Industry REIT - Retail
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type
Employees 665

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