CapitaLand Ascendas REIT (A17U) H2 2025 earnings summary

Executive summary

• FY 2025 distributable income rose 1.4% YoY to S$678.3 million, while DPU declined 1.3% YoY to 15.005 cents due to an enlarged unit base from equity fundraising and fee payments in units.

• Gross revenue increased 1.0% YoY to S$1,538.6 million, and net property income (NPI) grew 1.7% YoY to S$1,067.6 million, driven by acquisitions, partially offset by divestments.

• Portfolio value reached S$18.2 billion, up 8.6% YoY, with 222 investment properties and a diversified tenant base across Singapore, US, Australia, and UK/Europe.

Financial highlights

• NPI for 2H 2025 increased 4.3% YoY to S$544.1 million; distributable income for 2H 2025 rose 2.7% YoY to S$347.2 million.

• DPU for 2H 2025 was 7.528 cents, down 2.0% YoY due to a larger unit base.

• Portfolio rental reversion for FY 2025 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.

Outlook and guidance

• Global economic growth is projected to remain steady at 3.3% in 2026, but uncertainties from tariffs and geopolitical tensions persist.

• Singapore GDP is expected to grow 1.0–3.0% in 2026; portfolio focus remains on acquisitions, redevelopments, and AEIs to optimize returns.

• Rental reversion for FY 2026 is expected to be in the mid-single digits.