On 1 February 2023, CapitaLand Integrated Commercial Trust (“CICT”) have announced their 2022 full year results. Overall the results are stable, though their gearing is still high and, not unexpected as similar to other retail and commercial REIT, they are still trading at a discount compared to the other sectors since their yield has not recovered to pre-Covid levels.
That may have resulted in them being unable to take up the Mercatus assets using debt nor equity financing. This however in the short-term is a good thing, as the interest rates may possibly continue to rise despite the recent bank issues in the US since the Federal Reserve key concern is to tame inflation. There may be potential for share price to fall if the macro-economic condition worsens.
Website: Financial Statements And Related Announcement::Full Yearly Results
Photo source: https://fifthperson.com/cmt-cct-merger-pros-cons/Background
CICT is the first and largest real estate investment
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