CapitaLand Ascendas REIT's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI increased YoY due to the full contribution from the 2023 acquisition and development completion. However, the total amount available for distribution only improved slightly due to lower income distribution from properties in Australia, UK, Europe, and the US. Despite these improvements, DPU declined YoY due to an enlarged unitholder base.

Rental Reversion

Portfolio rental reversion for 2Q and 1Q stands at 11.7% and 16%, respectively, with a 1H average of 13.4%.

Development/Asset Enhancement Initiative

Currently, there are 3 ongoing redevelopments and 2 AEIs expected to be completed between 3Q 2024 and 1Q 2026.

Divestment

In February, CLAR completed the divestment of 3 logistics properties in Australia.

Related Parties Shareholding

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

Lease Profile

The overall lease profile is moderate with a short weighted average land 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 and operating distributable income margin are relatively high, and management fees are competitive compared to operating distributable income.

DPU Breakdown

• TTM Distributable Income Breakdown:
• 96.5% from Operation
• 2.7% from Management Fees Paid in Units
• 0.8% from Income Support 

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Committed Occupancy
• Flat: DPU from Operation, Property Yield, Operating Distribution Proportion
• Downtrend: Adjusted Interest Coverage Ratio, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

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

Author's Opinion

Gross revenue, NPI, the total amount available for distribution, and DPU have improved slightly compared to the previous half-year. For debt, only 7% matures in the remainder of 2024, while 13% matures in 2025.

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.