CapitaLand Ascendas REIT - RHB Invest 2023-08-01: Steady & Stable; Keep BUY

• 1H23 results for CapitaLand Ascendas REIT (SGX:A17U) were in line. Operational metrics came in slightly better than expected - with very strong double digit rent reversions and stable occupancy - and are expected to remain strong for the rest of the year.
• - Read this at SGinvestors.io -
• CapitaLand Ascendas REIT remains on track to complete an earlier announced acquisition in Europe and will focus on extracting value through asset enhancement initiatives (AEIs).

1H23 DPU down 2% y-o-y; expecting a flattish 2H

• 1H23 DPU down 2% y-o-y; expecting a flattish 2H with higher revenue and net property income (NPI) contributions from organic rental growth as well as contributions from recent acquisitions.
• - Read this at SGinvestors.io -
• Approximately 82% of CapitaLand Ascendas REIT's debt is currently fixed which mitigates the rising rates as every 50bps rise results in ~1% DPU impact.
• Based on an internal valuation, there were no significant changes in the overall value of its portfolio, with a slight uptick in Singapore and the UK, offsetting a slight weakness in the US.

Rental growth to continue

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-08-01 SGinvestors.io

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