CapitaLand Ascendas REIT (A17U) H1 2025 earnings summary

Executive summary

• Delivered steady results for 1H 2025 amid macroeconomic uncertainties, with distributable income at S$331.1 million, DPU at 7.477 cents, and portfolio occupancy at 91.8%.

• 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.

• Major acquisitions and redevelopments included the DHL Logistics Center in the U.S. and 5 Science Park Drive in Singapore.

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

• Portfolio value increased to S$16.83 billion as of 30 June 2025.

Financial highlights

• Net property income (NPI) for 1H 2025 was S$523.4 million, down 0.9% year-over-year.

• Distribution income was stable at S$331.1 million; DPU slightly down to 7.477 cents due to increased units.

• Interest coverage ratio was 3.7x, and 75.9% of borrowings were on fixed rates.

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

• Net asset value per unit was 219 cents.

Outlook and guidance

• Rental reversion guidance maintained at mid-single digits for FY 2025, despite high double-digit performance in 1H.

• Cost of debt expected to remain around 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.