CapitaLand Ascendas REIT (A17U) H2 2024 earnings summary

Executive summary

• Distributable income rose 2.2% year-over-year to SGD 668.8 million for FY 2024, with DPU up 0.3% to SGD 0.15205.

• Gross revenue increased 2.9% year-over-year to SGD 1.5 billion, mainly from full-year contributions of 2023 acquisitions and developments.

• Portfolio occupancy remained high at 92.8% as of 31 Dec 2024, with positive rental reversions of 11.6%.

• Investment properties valued at SGD 16.76 billion, diversified across Singapore, US, Australia, UK, and Europe.

• Sustainability achievements include inclusion in FTSE4Good indices and maintaining an 'AA' MSCI ESG rating.

Financial highlights

• Net property income (NPI) increased 2.6% year-over-year to SGD 1.05 billion.

• DPU for 2H 2024 was 7.681 cents, up 2.1% sequentially from 1H 2024.

• Aggregate leverage stood at 37.7%, with available debt headroom of ~SGD 4.4 billion.

• Divestment of four properties at a 38% premium to valuation, totaling SGD 177 million.

• AEIs worth SGD 3.9 million completed, boosting occupancy at key Singapore properties.

Outlook and guidance

• Rental reversions for FY 2025 expected to remain in the positive mid-single digit range.

• About 17% of rental revenue up for renewal in 2025, with 80% in Singapore.

• SGD 30–40 million additional annual income expected from projects completing in FY 2025.

• Manager plans further redevelopments in Singapore and expansion of logistics presence in the US.

• Global economic growth projected at 3.3% for 2025 and 2026, with uncertainties in trade and monetary policy.