CapitaLand Ascendas REIT - CGS-CIMB Research 2024-02-07: Dragged By Higher Funding Cost

• CapitaLand Ascendas REIT (SGX:A17U) reported an 11%/4.6% y-o-y rise in 2H23 revenue/NPI to S$761.7m/S$514.3m, with contributions from new acquisitions and better performance of existing assets. However, distribution income dipped 1.9% y-o-y to S$326.9m, largely on the back of higher interest expenses.

2H/FY23 DPU below our estimates

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• CapitaLand Ascendas REIT's DPU of 15.16 cents for FY23 was 4% lower y-o-y.

FY24 funding cost at below 4%

• CapitaLand Ascendas REIT saw a 3% expansion in portfolio value to S$16.92bn at end-FY23 due to new acquisitions. On a same-store basis, it experienced a 1.8% decline in asset values, largely coming from lower asset values in the US and Australia, partly offset by higher valuation in Singapore and UK/Europe.
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Portfolio rental reversion averaged +13.4% in FY23

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LOCK Mun Yee CGS-CIMB Research | Natalie ONG CGS-CIMB Research | https://www.cgs-cimb.com 2024-02-02 SGinvestors.io

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