CapitaLand Ascendas REIT (A17U) H2 2024 earnings summary

Executive summary

• Distributable income rose 2.2% year-over-year to S$668.8 million, with distribution per unit (DPU) up 0.3% to 15.205 cents.

• Gross revenue increased 2.9% year-over-year to S$1,523.0 million, driven by new acquisitions and developments.

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

• Investment properties valued at S$16.76 billion, with a diversified portfolio 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) grew 2.6% year-over-year to S$1,049.9 million.

• 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 ~S$4.4 billion.

• Cost of debt stable at 3.7%; interest coverage ratio at 3.6x.

• Portfolio valuation stable, with uplift in Singapore offsetting declines in US and Australia.

Outlook and guidance

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

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

• Portfolio expected to grow with new US logistics assets and ongoing Singapore redevelopments.

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