- CapitaLand Ascendas REIT (SGX:A17U) reported DPU of 7.524 cents for 1H24 (-2.5% y-o-y), which is in line with our expectations. The REIT has a resilient balance sheet with average debt maturity at 3.7 years. Management plans to scale up in new economy assets such as data centres.
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Generating steady growth.
- Gross revenue increased 7.2% y-o-y in 1H24, driven by acquisitions completed in 2023 and newly completed properties. NPI grew 3.9% y-o-y, while NPI margin narrowed 2.3ppt y-o-y to 68.6%. Finance costs increased 16.3% y-o-y.
Maintaining positive rental reversion.
- CapitaLand Ascendas REIT achieved positive rental reversion of 11.7% for leases that were renewed in multi-tenant buildings in 2Q24 (Singapore: +11.9%, Australia: +7.7%, UK/Europe: +10.1% and US: +11.9%).
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Portfolio occupancy eased 0.2ppt q-o-q to 93.1%.
- Occupancy for Singapore eased slightly by 0.3ppt q-o-q to 92.0% in 2Q24 due to lower occupancy for the logistics property at 40 Penjuru Lane.
- Occupancy for the US eased 1.8ppt q-o-q to 87.7% due to the expiration of leases for two single-tenant properties at Lackman Business Centre 4 in Kansas City (logistics) and 9405 Gemini in Portland (business space).
- Occupancy for Australia was stable at 96.8% with higher occupancy for business space properties.
Prudent capital management.
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