CapitaLand Integrated Commercial Trust (CICT), under the issuing entity CMT MTN Pte. Ltd., plans to issue new 5-year SGD senior unsecured green bonds at an initial price guidance (IPG) of 2.40% (for accredited and institutional investors only). These bonds will be guaranteed by HSBC Institutional Trust Services (Singapore) Limited in its capacity as trustee of CICT.
The guarantor is rated A- (Stable) by S&P and A3 (Stable) by Moody’s. The bond is expected to carry a credit rating of A- from S&P. Proceeds from this issuance will be used to finance or refinance eligible green projects undertaken by CICT and its subsidiaries in accordance with CICT’s green finance framework.
FY25 results highlights
CICT delivered a solid FY25 performance with steady operating momentum. FY25 revenue grew +2.1% year-on-year (YoY) to $1,619m, while net property income rose similarly by +3.1% to $1,190m. Top-line growth was more pronounced in 2H25, driven by income contributions from ION Orchard, contributions from the acquisition of CapitaSpring’s commercial component in August, and continued resilience across its existing portfolio.
CICT’s FY25 total return (net income including fair value & divestment changes) increased slightly to $951m (+1.0%). Underlying costs were broadly stable, including a $31m decline in finance costs. Apart from changes in top-line revenues, the main difference between FY24 and FY25 stemmed from lower (though still positive) fair value changes in FY25, as well as the absence of gains from divestments of investment properties.
Operationally, CICT’s portfolio fundamentals remained firm. As of 31 December 2025, portfolio occupancy stood at 96.9%, with all three segments (retail, office, and integrated developments) recording occupancies above 95%. Rental reversions were 6.6% for both the retail and office portfolios, reflecting solid underlying leasing demand. In particular, the positive reversion in the office segment underscores the quality of CICT’s assets, especially amid broader macroeconomic uncertainty and ongoing concerns around office demand.
CICT’s weighted average lease expiry (WALE) came in at 3.0 years on a portfolio level, with a significant portion of leases expiring between 2026 and 2028. The retail segment’s WALE is shorter at just 1.9 years. While the relatively short WALE could present some risks if the macroeconomic backdrop deteriorates sharply, we believe CICT’s high-quality asset portfolio and recent leasing momentum could mitigate the likelihood of any material impact.
Credit highlights
CICT’s aggregate leverage was reported at 38.6% as of 31 December 2025 (September 2025: 39.2%), giving it a sizeable headroom below the 50% regulatory requirement. Its interest coverage ratio improved to 3.7x (September 2025: 3.5x / December 2024: 3.1x), reflecting better earnings and lower finance costs.
Furthermore, the majority (90.9%) of its assets are unencumbered, providing additional flexibility should CICT need to tap funding at more favourable rates.
CICT’s debt has an average term to maturity of 4.0 years, stable from previous years. Debt maturities are well distributed, with a mild concentration around the 2028 – 2030 mark. We expect the cost of debt (currently 3.2%) to remain relatively stable in the near term. Given that a decent proportion of its borrowings are fixed-rate, it may take time for the effect of lower rates to fully flow through to overall funding costs.
Overall, CICT maintains a strong balance sheet, with credit metrics that compare favourably against other SGD-listed trusts. This view is supported by strong investment-grade ratings from agencies: A- by S&P and A3 by Moody’s.
Bond comparison
The new issue’s IPG of 2.40% represents a modest yield pickup over prevailing 5y SGS yields (around 1.52%). Depending on where the final price guidance (FPG) lands, these bonds may offer modest value over their 2030 bonds (2.01%, maturing in 4.3y) and/or 2031 bonds (2.15%, maturing in 5.4y). These bonds also offer similar yields to peer bonds from CapitaLand Ascendas REIT (AREIT), which are rated A3 as well, or to peer bonds from Frasers Logistics & Commercial Trust (FLTSP) or Mapletree Pan-Asia Commercial Trust (MCTSP), which are rated slightly lower.
However, there is a notable dip in yield compared to senior non-preferred bonds by BNP and Credit Agricole, despite the lower bond rating on this new issue. Overall, we find this new issue fairly priced. This new issue is likely best-suited for conservative investors looking for a solid issuer to earn consistent income over the next 5 years.
Table 1: Bond comparison
| Bond Name | Maturity Date (Years to Maturity) |
Ask Price | Yield to Worst (%) | Credit Rating (S / M / F) |
| CICT New Issue* | 10 Mar 2031 (5.0) | 100.000* | 2.40%* | - / - / - |
| CAPITA 2.880% 10Nov2027 Corp (SGD) | 10 Nov 2027 (1.7) | 102.096 | 1.62% | - / A3 / - |
| CAPITA 2.100% 08Mar2028 Corp (SGD) | 08 Mar 2028 (2.0) | 100.738 | 1.73% | A- / A3 / - |
| CAPITA 3.938% 19Jun2030 Corp (SGD) | 19 Jun 2030 (4.3) | 107.915 | 2.01% | - / A3 / - |
| CAPITA 3.350% 07Jul2031 Corp (SGD) | 07 Jul 2031 (5.4) | 106.054 | 2.15% | - / A3 / - |
| CAPITA 2.250% 27Sep2032 Corp (SGD) | 27 Sept 2032 (6.6) | 99.830 | 2.28% | - / A3 / - |
| CAPITA 2.150% 07Dec2032 Corp (SGD) | 07 Dec 2032 (6.8) | 98.768 | 2.35% | A- / A3 / - |
| CAPITA 3.750% 10Jul2034 Corp (SGD) | 10 Jul 2034 (8.4) | 109.467 | 2.49% | A- / - / - |
| CAPITA 3.300% 30Apr2035 Corp (SGD) | 30 Apr 2035 (9.2) | 106.326 | 2.52% | A- / - / - |
| AREIT 2.650% 26Aug2030 Corp (SGD) | 26 Aug 2030 (4.5) | 102.522 | 2.06% | - / A3 / - |
| AREIT 2.343% 27August2032 Corp (SGD) | 27 Aug 2032 (6.5) | 100.650 | 2.24% | - / A3 / - |
| FLTSP 3.830% 26Mar2029 Corp (SGD) | 26 Mar 2029 (3.1) | 105.393 | 2.01% | NR / - / BBB+ |
| FLTSP 2.450% 15Feb2034 Corp (SGD) | 15 Feb 2034 (8.0) | 99.800 | 2.48% | - / - / BBB+ |
| MCTSP 4.250% 29Mar2030 Corp (SGD) | 29 Mar 2030 (4.1) | 108.350 | 2.10% | - / Baa2 / - |
| MCTSP 3.104% 11Mar2032 Corp (SGD) | 11 Mar 2032 (6.0) | 104.150 | 2.36% | - / Baa2 / - |
| MCTSP 2.450% 13Aug2032 Corp (SGD) | 13 Aug 2032 (6.5) | 100.479 | 2.37% | - / Baa2 / - |
| SUNSP 3.400% 27Mar2031 Corp (SGD) | 27 Mar 2031 (5.1) | 103.385 | 2.68% | - / - / - |
| BNP 3.310% 23May2032 Corp (SGD) | Call: 23 May 2031
(5.2) Maturity: 23 May 2032 (6.2) |
104.064 | 2.48% | - / - / A+ |
| ACAFP 2.750% 15Jan2032 Corp (SGD) | Call: 15 Jan 2031 (4.9) Maturity: 15 Jan 2032 (5.9) |
100.650 | 2.53% | A- / A3 / A+ |
| Source: Bloomberg, Bondsupermart, iFAST compilations. Data as of
01 Mar 2026. *Not yet issued. Indicative yield is an IPG, and FPG is likely to be revised downwards. |
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Declaration: At the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold NIL positions in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.
