CapitaLand Ascendas REIT (A17U) H2 2025 earnings summary

Executive summary

• Distributable income for FY2025 rose 1.4% year-over-year to SGD 678.3 million, driven by accretive acquisitions and prudent expense management.

• Gross revenue increased 1% to SGD 1.54 billion, with new acquisitions offsetting divestments.

• Portfolio value reached SGD 18.2 billion, up 8.6% year-over-year, with 222 investment properties and a diversified tenant base across Singapore, US, Australia, and UK/Europe.

• Portfolio occupancy stood at 90.9% at year-end, with strong rental reversions of 12% for the year.

• Significant capital recycling with SGD 506.5 million in divestments at a premium to valuation and purchase price.

Financial highlights

• Distribution per unit (DPU) for FY2025 was SGD 0.15005, slightly lower due to a larger unit base after equity fundraising.

• Net property income (NPI) increased 1.7% year-over-year, supported by lower operating expenses.

• Second half 2025 saw a 4.9% increase in distributable income and a 0.7% rise in DPU compared to the first half.

• Portfolio rental reversion for FY2025 was +12.0%, with strong reversion in Australia (+41.0%) and the US (+12.3%).

• Aggregate leverage stood at 39.0% as of 31 Dec 2025, with SGD 4.2 billion debt headroom to the 50% MAS limit.

Outlook and guidance

• Rental reversions for 2026 are guided to be in the mid-single digit range, with Singapore and Australia expected to be strong markets.

• Management expects continued resilience due to a diversified portfolio and prudent financial management.

• Divestments in 2026 are targeted at SGD 300–500 million to fund new acquisitions.

• CapEx for ongoing and new developments is projected at SGD 700 million, with SGD 200–230 million of value to be realized in 2026.

• Singapore GDP is expected to grow 1.0–3.0% in 2026; portfolio focus remains on acquisitions, redevelopments, and AEIs to optimize returns.