CapitaLand Integrated Commercial Trust (CICT) has released their 3Q2022 Business Update. On the back of new acquisition, Gross Revenue increased 13.7% year on year to S$374.1 million. Net Property Income (NPI) also increased 12.7% year on year to S$273.2 million. As you may have already guessed, the gains were partially offset by rise in utilities expenses. In terms of year to date (YTD) performance, gross revenue increased 8.9% to S$1,061.7 million while Net Property Income (NPI) increased 8.4% to S$775.0 million.

Debt

As of 30th September 2022, gearing still stood high at 41.2%. If you are worry about rising interest rates, 80% of CICT’s borrowings are hedged against fixed interest rate. Nevertheless, if you see the slide below, a 1.0 p.a. increase in interest rate will setback the Distribution Per Unit (DPU) by an estimate of 0.30 cents. This is really not a good thing for dividend investors....