CapitaLand Integrated Commercial Trust (SGX:C38U) is well-positioned to improve its properties and secure its future performance, S&P Global Ratings said in a Thursday release.

The Singapore-based real estate investment trust (REIT) owns high-quality portfolios in prime locations, with upgrades to IMM Building in Singapore and Gallileo in Frankfurt, Germany expected to be completed in H2 of 2025, S&P said.

The REIT may pursue further improvements, especially for properties in weaker markets like North Sydney, according to the rating agency.

Still, S&P expects the REIT to manage its credit profile carefully as it undertakes these projects.

The REIT's funds from operations (FFO) to debt ratio may rise to between 7.6% and 8% in 2025, S&P said.

It may also take on about SG$660 million in additional debt before hitting its target leverage limit of 40%, the rating agency said.

S&P also expects the trust's revenue to expand by 3% to 8% per year until 2026, mainly due to the contributions from ION Orchard and Gallileo.