Real Estate Investment Trusts (REITS) are favoured by income investors due to their steady distribution payout. Recently, CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, raised its distribution, pushing its trailing annualised yield close to 5%. The question that may weigh on investors’ minds is: With CICT raising its distributions, is it a buy now?

Background

CICT is Singapore’s largest REIT. The trust has a diverse portfolio of 26 properties valued at S$27 billion as of 31 December 2024. 21 of the trust’s properties are in Singapore with the remaining in Germany (two) and Australia (three). The portfolio is focused on offices (mainly in Singapore’s central business district), retail malls, and integrated developments. You might have visited some of their local properties before, for example, Plaza Singapura, CapitaSpring, and Raffles City.

Recent Performance

CICT’s share price has rallied 21% year-to-date, excluding distributions, to S$2.34. In the first half of 2025 (1H 2025), the trust’s revenue was down slightly by 0.5% year-on-year (YoY) to S$787.6 million....