CapitaLand Ascendas REIT (A17U) H2 2025 earnings summary

Executive summary

• Distributable income for FY2025 increased 1.4% year-on-year to S$678.3 million, driven by accretive acquisitions, prudent expense management, and portfolio rejuvenation.

• Gross revenue rose 1.0% year-on-year to S$1,538.6 million, and net property income grew 1.7% year-on-year to S$1,067.6 million, supported by new property contributions and lower operating expenses.

• Portfolio value reached S$18.2 billion, up 8.6% year-on-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 a third consecutive year of double-digit rental reversions (12%).

• DPU for FY2025 was 15.005 Singapore cents, down 1.3% year-on-year due to an enlarged unit base from equity fundraising and fee payments in units.

Financial highlights

• NPI for 2H2025 increased 4.3% year-on-year to S$544.1 million; distributable income for 2H2025 rose 2.7% year-on-year to S$347.2 million.

• 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 S$4.2 billion debt headroom to the 50% MAS limit.

• Weighted average all-in debt cost was 3.5%, and interest coverage ratio was 3.6x.

• Distribution yield for FY2025 was 5.3% based on the closing price of S$2.83 per unit.

Outlook and guidance

• Rental reversion guidance for 2026 is in the mid-single digit range, with Singapore and Australia expected to remain strong.

• CapEx for 2026 expected at S$700 million, with S$200–230 million of value to be turned on from ongoing projects.

• Divestment target for 2026 is S$300–500 million to fund new acquisitions.

• Interest cost expected to remain around 3.5% in 2026.

• About 19.6% of gross rental income is due for renewal in FY2026.