CapitaLand Integrated Commercial Trust (CICT) has been highlighted by DBS Group Research as a promising investment, following a 3.5% year-on-year increase in its distribution per unit (DPU) to 5.62 Singapore cents for the first half of 2025. This performance exceeded expectations due to strong rental reversions and reduced financing expenses. Consequently, DBS Group Research has raised its 12-month target price for CICT to SGD2.50, reflecting an 11% upside from the last traded price of SGD2.26 on 25 August 2025.
The trust’s robust performance is attributed to its strategic acquisition of the remaining 55% stake in CapitaSpring Commercial, which is expected to be accretive by 1%. This acquisition, along with anticipated master lease renewals in the financial years 2026 and 2027, is set to bolster CICT’s growth. Geraldine Wong, an analyst at DBS, noted that the trust is well-positioned to benefit from Singapore’s stable economy, with its assets contributing approximately 95% of revenue.
CICT’s portfolio, which covers a significant portion of Singapore’s commercial properties, is expected to sustain organic growth. The trust’s leverage ratio of around 38% provides ample room for future asset enhancement initiatives and acquisitions. Additionally, the completion of asset enhancement initiatives at key locations such as IMM Building and Lot One, Tampines Mall, is anticipated to support growth visibility.
DBS Group Research maintains a “BUY” rating for CICT, with the revised target price implying a forecast yield of 4.5% for the financial year 2025. The trust’s strategic moves and stable economic environment in Singapore are expected to support a 3% annual growth in DPU from 2025 to 2026.
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