- While CapitaLand Ascendas REIT has an A-rated credit and a portfolio exposed to high-end manufacturing/R&D, a weaker operating trend and limited upside keep us on HOLD.
Healthy reversion, occupancy slipping
- - Read this at SGinvestors.io -
- Reversion guidance has been maintained at a mid-single-digit range.
- Debt metrics were sequentially weaker with higher gearing and borrowing cost as well as a lower coverage ratio.
Operating trends: pluses & minuses
- CapitaLand Ascendas REIT's portfolio occupancy was 93.3% in 1Q24, 90bps lower then 4Q23 and off from 94.4% a year ago. The decline was across its geographic footprint but primarily led by assets in the UK/Europe and Australia. Same-store occupancy in Singapore slipped slightly by 30bps q-o-q/10bps y-o-y to 92.2%.
- - Read this at SGinvestors.io -
- Management maintained rental reversion guidance for FY24 at a positive mid-single-digit range.
Debt metrics in a soft patch
- Read more at SGinvestors.io.
