CapitaLand Ascendas REIT (A17U) H1 2025 earnings summary

Executive summary

• Delivered steady results for 1H 2025 amid macroeconomic uncertainties, with stable distribution income of S$331.1 million and high portfolio occupancy at 91.8%, supported by positive rental reversions up to 9.5%.

• Completed acquisition of DHL Logistics Center in the U.S. for S$153.4 million and redevelopment of 5 Science Park Drive in Singapore.

• Investment properties rose to S$16.83 billion, a 0.4% increase from end-2024.

• Aggregate leverage improved to 37.4%, with a stable cost of debt at 3.7%.

• Distribution per unit (DPU) was 7.477 cents, down 0.6% year-over-year due to a larger unit base.

Financial highlights

• Gross revenue for 1H 2025 was S$754.8 million, down 2% year-over-year, mainly due to divestments and decommissioning, partially offset by new acquisitions.

• Net property income declined 0.9% year-over-year to S$523.4 million.

• Net property income margin remained stable at 69.3%.

• Total return attributable to unitholders fell 14.6% year-over-year to S$298.3 million.

• Cash and cash equivalents at period end were S$180.9 million.

Outlook and guidance

• Portfolio rental reversion for FY 2025 is expected to remain in the positive mid-single digit range.

• Cost of debt expected to remain stable at 3.7% for the year, including upcoming refinancing.

• Manager remains disciplined in pursuing accretive opportunities and expects stable returns supported by a diversified tenant base and long WALE of 3.7 years.

• Macroeconomic uncertainties, including global trade tensions and inflation, are expected to persist.

• Manager remains cautious on acquisitions and focused on portfolio optimization.