- Key highlights from CapitaLand Ascendas REIT's 3Q update include active capital recycling and refinancing, better-than-expected reversion and continued slippage in portfolio occupancy.
- - Read this at SGinvestors.io -
- All in, a steady quarter with no tricks or treats.
Healthy operating metrics.
- Portfolio occupancy was 91.3% (2Q 91.8%). The drop was mainly due to inclusion of newly completed logistics redevelopment in Singapore and continued non-renewals in US business parks.
- Singapore same-store occupancy was 91% (2Q 91.2%).
- US occupancy fell 2%pts q-o-q to 83.3%.
- UK/Europe was relatively stable while Australia rose due to backfilling in logistics.
- - Read this at SGinvestors.io -
- Electronics and logistics were top segments for new demand in Singapore and overseas, respectively.
Active capital and portfolio management.
- Gearing rose to 39.8% (2Q 37.4%) with cost of debt lower at 3.6% (2Q 3.7%). The quarter was busy with CapitaLand Ascendas REIT announcing ~S$1.3b of acquisitions in Singapore and ~S$381m of divestments.
- In addition, CapitaLand Ascendas REIT announced S$350m of redevelopment in UK keeping the development and AEI pipeline relatively stable at S$750m. This was funded by S$1b of capital raising to refinance existing borrowings.
- CapitaLand Ascendas REIT issued 7-year S$700m green note at 2.343%. Cost of debt guide is stable for current fiscal year.
Maintain BUY.
- Read more at SGinvestors.io.
