- Notwithstanding lower distribution, CapitaLand Ascendas REIT is positioning for sustainable long-term growth. Maintain BUY on strong credit, diversified portfolio and exposure to hi-end industrial activity.
FY25 DPU fell 1.3%
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- Portfolio occupancy slipped due to overseas assets while low teens positive reversion continued. Gearing rose while cost of debt fell with a stable outlook. Same-store portfolio value rose by a low single-digit from lower cap rates.
Stable operations
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- Combined with higher number of units, CapitaLand Ascendas REIT's DPU for 2H fell 2% y-o-y and fell 1.3% y-o-y for the full year.
- Occupancy was 90.9% (3Q 91.3%, Dec 2024 92.8%), primarily impacted by lower occupancy in a UK warehouse marked for redevelopment. Same-store occupancy for Singapore was lower at 91.0% (91.2% 3Q, 92.6% in Dec 2024).
- Portfolio reversion was +12%, led by business parks in Singapore and logistics overseas. Guide is for mid-single digit positive reversion for FY26.
Prudent capital management
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