CapitaLand Ascendas REIT (A17U) H1 2024 earnings summary

Executive summary

• Gross revenue rose 7.2% year-over-year to SGD 770.1 million for 1H FY2024, driven by new property contributions, acquisitions, and completed developments, partially offset by divestments and property decommissions.

• Net property income increased 3.9% year-over-year to SGD 528.4 million, while net income declined 25.4% to SGD 296.0 million due to higher finance costs and foreign exchange losses.

• Distributable income grew 1.1% year-over-year to SGD 330.8 million, but DPU declined 2.5% to 7.524 cents due to a larger unit base.

• Portfolio comprised 229 properties across Singapore, Australia, UK/Europe, and the US, with occupancy stable at 93.1–93.2% and positive rental reversions averaging 13.4% in 1H.

Financial highlights

• Net property income: SGD 528.4 million (+3.9% YoY); gross revenue: SGD 770.1 million (+7.2% YoY).

• Distributable income: SGD 330.8 million (+1.1% YoY); DPU: 7.524 cents (-2.5% YoY).

• Net income: SGD 296.0 million (-25.4% YoY); total return: SGD 353.7 million (-5.0% YoY).

• Investment properties valued at SGD 16.87 billion as of 30 June 2024; net asset value per unit: SGD 2.27.

• Aggregate leverage at 37.8%, with SGD 4.4 billion debt headroom to MAS limit; cost of debt stable at 3.7%.

Outlook and guidance

• Rental reversion guidance revised upwards to high single digits for FY2024, reflecting confidence in leasing spreads.

• Portfolio occupancy expected to remain stable at 93–94% by year-end, with U.S. business parks facing continued pressure.

• Macro environment remains stable but slow, with global growth forecast at 3.2% and Singapore GDP at 1.0–3.0% in 2024.

• Selective divestments and redevelopments to optimise returns, with ongoing projects totaling over SGD 543 million.

• Ongoing uncertainties in inflation, monetary policy, and geopolitics may impact operating costs and tenant businesses.