CapitaLand Ascendas REIT - Maybank Research 2025-02-24: Higher Distribution; Eyeing Value-add Opportunities

• CapitaLand Ascendas REIT reported 2H DPU of S$7.68 cents, +2.1% h-o-h/+3.2% y-o-y. Full year CapitaLand Ascendas REIT's dividends of S$15.21 cents, +0.3% y-o-y. Organic growth and ongoing reconstitution contributed to the bottom-line growth.
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• Manager is targeting more redevelopments in Singapore and an expanded logistics presence in the US.

Resilient portfolio

• 2H24 revenue and NPI of S$753m and S$522m fell 1.1% and rose 1.4 % y-o-y, respectively. Compared to 1H, revenue and NPI was down 2.2% and 1.3% respectively. CapitaLand Ascendas REIT's Full year revenue and NPI rose 2.9% and 2.6% y-o-y. The effects of ongoing portfolio reconstitution, lower utilities income and operating expenses caused the variations. Lower interest expense for 2H with partial offset from higher number of units led to higher distribution income and DPU.
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• Business park demand remains location specific. CapitaLand Ascendas REIT is reaching out to a diverse set of tenants to backfill such spaces. Slowdown in Australia logistics is not pervasive.

Prudent capital management

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Krishna Guha Maybank Research | https://www.maybanktrade.com.sg/ 2025-02-24 SGinvestors.io

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