CICT’s lower DPU, higher gearing since pandemic may have some investors questioning its strategy

AN AWKWARD question came up during the CapitaLand Integrated Commercial Trust (CICT) financial results briefing last week.

One analyst pointed out that CICT’s distribution per unit (DPU) of 10.75 Singapore cents for FY2023 was still well below the 11.97 cents it achieved in FY2019.

The trust’s current performance versus FY2019 is relevant not just because FY2019 was the year before the pandemic forced everyone to stay home, but also because FY2019 was the last full financial year before CICT merged with CapitaLand Commercial Trust (CCT).

CICT was previously known as CapitaLand Mall Trust. It merged with CCT in 2020, in what was touted as a game-changing transaction that would enable it to…