CapitaLand Ascendas REIT's 2H FY23 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI have increased YoY mainly due to the full half-yearly contribution from the acquisition of 3 properties in 1H and the acquisition of The Chess Building in August. However, the amount available for distribution has declined slightly YoY due to a significant increase in property expenses and finance costs. DPU has also declined YoY due to the above reasons and an enlarged unitholder base.

Rental Reversion

Portfolio rental reversion for 4Q and 3Q stands at 15.2% and 10.2%, respectively. The full-year portfolio rental reversion averages at 13.4%.

Acquisition/Development/Asset Enhancement Initiative

In 2H, CLAR acquired The Chess Building and completed development for MQX4. Additionally, AEIs for The Alpha and 6055 Lusk Boulevard have been completed. Currently, there are 3 ongoing redevelopments and 2 AEIs expected to be completed between 3Q 2024 to 1Q 2026.

Divestment

On 20 Dec 2023, CLAR announced for divestment of 3 properties at a premium to valuation.

Related Parties Shareholding

The REIT sponsor, REIT manager, and directors of the REIT manager hold a relatively low proportion of shareholding.

Lease Profile

The lease profile is moderate, with one notable strength being the well-spread lease expiry.

Debt Profile

WADM is relatively long with well-spread debt maturity, and the adjusted interest coverage ratio is relatively high.

Diversification Profile

The overall diversification profile is outstanding, although there is a slight geographical concentration.

Key Financial Metrics

The operating distributable income on capital is relatively high, and management fees are competitive compared to operating distributable income.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 96.1% from Operation
• 2.7% from Management Fees Paid in Units
• 1.2% from Income Support 

Trends

• Uptrend: NAV per Unit, 
• Slight Uptrend: Committed Occupancy
• Flat: DPU from Operation, Adjusted Interest Coverage Ratio, Property Yield
• Downtrend: Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

• Dividend Yield - Average for 1y, 3y & 5y
• P/NAV - Average for 1y, 3y & 5y

Author's Opinion

Gross revenue and NPI have improved compared to the previous half-year, however, DPU has declined YoY due to an enlarged unitholder base arising from a private placement in May. For debt, only 12% require refinancing in 2024.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.