Ascendas REIT - DBS Research 2022-08-03: Confident Of Further Positive Rental Reversions

Ascendas REIT - Confident Of Further Positive Rental Reversions


Ascendas REIT's 1H22 results highlights:

Higher revenues from acquisitions and completed developments.

  • Ascendas REIT (SGX:A17U)'s 1H22 revenues increased 13.7% y-o-y to S$666.5m due mainly to contributions from acquisitions in the past year.
    • - Read this at -
    • 75% interest in Galaxis (June 2021).
    • 11 logistics properties in Kansas City (November 2021).
    • 7 logistics properties in Chicago (June 2022).
    • Completion of Grab HQ (July 2021).
    • Several other development completions in Singapore and Australia.
  • Higher revenues were partially offset by divestments
    • 1314 Ferntree Gully Road, Melbourne (June 2021).
    • 82 Noosa Street and 62 Stradbroke Street, Brisbane (July 2021).
  • 1H22 NPI increased 7.0% y-o-y to S$476.9m in tandem with higher revenues
    • - Read this at -
    • Utilities made up ~23% of OPEX, and ~17% is recoverable from tenants.
  • .NPI margins fell from ~74.3% to ~70.3% y-o-y mainly due to higher utilities cost for Singapore properties
    • Expect margins to remain close to current levels as utility contracts have been locked in until December 2022.

1H22 DPU of 7.873 cents in line with projections.

13.2% positive rental reversions in 2Q22.

Portfolio occupancy improved further to 94.0%.

Capital management metrics maintained, but could see financing costs edge up.

S$566m worth of ongoing projects to drive income growth.

Our Thoughts

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Dale LAI DBS Group Research | Derek TAN DBS Research | 2022-08-03

Read also DBS's most recent report:
2023-08-01 CapitaLand Ascendas REIT - Redevelopment In Progress, Acquisition To Boost Growth.

Previous report by DBS:
2023-02-03 CapitaLand Ascendas REIT - Ready For Next Leg Of Growth.

Price targets by 5 other brokers at CapitaLand Ascendas REIT Target Prices.

Listing of research reports at CapitaLand Ascendas REIT Analyst Reports.

Relevant links:
CapitaLand Ascendas REIT Share Price History,
CapitaLand Ascendas REIT Announcements,
CapitaLand Ascendas REIT Dividends & Corporate Actions,
CapitaLand Ascendas REIT News Articles


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