CapitaLand Ascendas REIT (A17U) H1 2024 earnings summary

Executive summary

• Gross revenue for 1H 2024 rose 7.2% year-over-year to S$770.1 million, driven by acquisitions, new developments, and property contributions across multiple geographies.

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

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

• Portfolio occupancy remained stable at 93.1–93.2%, with strong rental reversions averaging 13.4% in 1H 2024.

• The portfolio is diversified across Singapore, Australia, US, and UK/Europe, spanning 229 properties and over 1,780 tenants.

Financial highlights

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

• Distributable income: S$330.8 million (+1.1% YoY); DPU: 7.524 cents (-2.5% YoY) due to a larger unit base.

• Net income: S$296.0 million (-25.4% YoY); earnings per unit: 7.948 cents (-8.4% YoY).

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

• Finance costs increased 16.3% YoY to S$123.3 million, mainly from higher interest expenses and borrowings.

Outlook and guidance

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

• Global economic growth projected at 3.2% in 2024, with Singapore GDP growth forecast between 1.0% and 3.0%.

• Portfolio expected to generate stable returns, supported by long WALE and diversified tenant base.

• Ongoing asset enhancement initiatives and redevelopments to optimise returns and create value.

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