CapitaLand Ascendas REIT - RHB Invest 2024-04-23: Strong Rent Growth Offsetting Lower Occupancy; BUY

• CapitaLand Ascendas REIT (SGX:A17U)’s 1Q24 business update showed continued strong momentum in rent growth offset by slightly higher vacancies.
• During the quarter, CapitaLand Ascendas REIT completed the divestment of three Australian assets and more of such divestments are likely this year.
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Positive rent reversion of 16.9%

• Positive rent reversion (1Q24) of 16.9% (4Q23: 15.2%, FY23: 13.4%) indicating continued strong demand for industrial assets.
• Singapore portfolio remains a key growth driver, registering a healthy double-digit (+16%) rent reversion during the quarter led by the logistics segment which saw a stellar 62% increase in renewal rates highlighting the strong market rent growth over the last few years.
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Slight dip in portfolio occupancy to 92.3%

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Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-04-23 SGinvestors.io

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