CapitaLand Ascendas REIT (A17U) H1 2026 earnings summary

Executive summary

• Distributable income for 1H 2026 rose 8.6% year-over-year to S$359.4 million, driven by acquisitions and resilient property performance across Singapore, Europe, the US, and Japan, with DPU stable at 7.482 cents despite an enlarged unit base.

• Gross revenue increased 6.7% year-over-year to S$805.5 million, and net property income rose 6.2% to S$556.1 million, offsetting divestments.

• Portfolio assets under management reached S$20.1 billion across 234 properties, with 65% in Singapore.

• Portfolio occupancy was 89.1% as of 30 June 2026; rental reversions averaged 8.5% in 1H 2026.

• Net income attributable to unitholders declined 6.0% year-over-year to S$280.3 million, mainly due to higher finance costs and foreign exchange losses.

Financial highlights

• Distributable income up 8.6% year-over-year and 3.5% sequentially; DPU stable at 7.482 cents, slightly lower sequentially due to a larger unit base.

• Adjusted NAV per unit increased to S$2.27 as of June 30, 2026.

• Aggregate leverage at 39.7%, with interest coverage ratio at 3.5x and cost of debt at 3.5%.

• 70.1% of debt is fixed rate; debt maturity profile is 2.5 years; 73% natural hedge for overseas investments.

• Cash and cash equivalents at period end: S$264.1 million.

Outlook and guidance

• Rental reversion guidance raised to high-single digit for FY 2026, reflecting strong leasing momentum.

• Portfolio expected to remain resilient and diversified, with stable returns despite slower global growth and inflationary pressures in 2026.

• Focus remains on Singapore and logistics/data center assets, with further income from new developments and two additional acquisitions expected in 2H 2026.

• Ongoing projects totaling S$507.2 million are scheduled for completion between 2026 and 2028.

• Manager to pursue further acquisitions, redevelopments, and AEIs to optimize returns.