CapitaLand Ascendas REIT
1H FY2025 Financial Analysis

Key Financial Metrics

The metrics above highlight a broadly stable operational performance, with some pressure on profit and distributions year-on-year. Gross revenue and NPI are slightly down YoY, mainly due to divestments, while DPU is marginally lower.

Historical Performance

• Gross Revenue: Down 2.0% YoY, up 0.2% QoQ [[54]].
• Net Property Income: Down 0.9% YoY, up 0.4% QoQ [[54]].
• DPU: Decreased by 0.6% YoY, down 2.7% QoQ [[54]].
• Total Return: Down 14.4% YoY, down 26.2% QoQ [[54]].
• EPU: Down 15.3% YoY, down 27.0% QoQ [[54]].

Historical performance shows a resilient topline amidst portfolio rebalancing, but profit and distributions are pressured by lower tax-exempt income and higher non-property expenses.

Asset Revaluation

• Investment properties are internally valued at 1H FY2025; external independent valuations were last done as at 31 Dec 2024 [[33]], [[39]], [[47]].
• No delay in revaluation is noted; the process is as per standard practice. The 2H FY2024 fair value gain (S\$10.8m) was due to valuation increase in Singapore, offset by decreases in Australia and the US [[55]].

Exceptional Earnings and Expenses

• 1H FY2025: Gain on disposal of investment properties S\$7.7m (US business space property sale) [[5]].
• 1H FY2025: Foreign exchange loss S\$11.6m, compared to S\$44.9m loss in 1H FY2024 [[5]].
• Net change in fair value of financial derivatives swung from S\$56.3m gain in 1H FY2024 to S\$8.2m loss in 1H FY2025 [[5]].
• Deferred tax expense: S\$10.96m expense in 1H FY2025 (mainly reversal of deferred tax assets), compared to a credit of S\$13.8m in 1H FY2024 [[6]].

Profit or Loss Timing

• No evidence of early or delayed booking of profits/losses; recognition appears in line with business activities (e.g., divestments, FX, derivatives, tax) [[5]], [[54]].

Directors’ Pay

• Not disclosed in the interim results. No mention of directors’ remuneration in the report [[document]].

Equity Fund Raising, Share Dilution, and Buybacks

• New shares issued: S\$500m raised via private placement in June 2025, 202.4m new units issued for acquisition funding [[43]], [[62]].
• No mention of share buybacks or a mandate for share buybacks [[43]], [[document]].

Related Party Transactions & Unusual Flows

• All related party transactions (management fees, property service fees, etc.) are disclosed and appear standard for a REIT. No evidence of unusual fund flows to related companies [[44]].

Dividend / Distribution

• DPU is marginally down YoY and QoQ [[54]].
• Next payment: 0.998 cents/unit for 6 June – 30 June 2025, ex-date: 12 Aug 2025, pay date: 4 Sep 2025 [[1]].

New Shares Issues / Placement

• S\$500m private placement in June 2025 to fund upcoming acquisitions (9 Tai Seng Drive, 5 Science Park Drive) and debt repayment [[62]].

Exceptional Events & Macro Risks

• No mention of natural disasters, disputes, court cases, or regulatory events directly impacting the company.
• Macro commentary highlights:
  • Global growth uncertainty (IMF forecast 2.8% in 2025, 3.0% in 2026), downside risks remain prominent [[56]].
  • Singapore’s GDP growth forecast 0–2% for 2025, inflation stable [[56]].
  • US, Australia, UK/Europe macroeconomic conditions detailed, but no specific adverse events for CLAR [[56]], [[57]].
  • No loss of tax benefits, no significant government policy changes reported [[document]].

Potential Divestments, Listings, or Fund-Raising

• Future portfolio growth via acquisitions (9 Tai Seng Drive, 5 Science Park Drive), funded by recent placement [[62]].
• Ongoing strategy includes selective redevelopments, AEIs (asset enhancement initiatives), and potential divestments to recycle capital [[56]].

Sudden Jumps in Profit, Revenue, or EPS

• No sudden jump observed; results show moderate decline YoY and QoQ, explained by divestments, lower tax-exempt income, and FX/derivative swings [[54]].

Other Corporate Actions

• No share buybacks or other significant new corporate actions besides the private placement and planned acquisitions [[62]].

Forecasted Events or Developments

• Manager expects to grow the portfolio to S\$11.8b with the planned acquisitions [[56]].
• Redevelopment of a UK data centre and opportunistic asset enhancements and acquisitions planned [[57]].
• Macro uncertainties (trade, inflation, monetary policy) noted as risks [[56]], [[57]].

Chairman’s Statement

• No chairman’s statement included in the interim results announcement. There is no extract in the report [[document]].

Investor Highlights & Insights

• Diversified asset base (Singapore, Australia, UK/Europe, US), with stable occupancy rates and long WALE [[57]].
• Stable topline, but profits and DPU are pressured by divestments and lower tax-exempt income.
• Aggregate leverage remains moderate at 37.4%, with interest coverage ratio healthy at 3.7x [[48]].
• Large fund raise completed in June 2025 ensures liquidity for growth and debt management.
• Asset valuations are up to date; no delay in revaluation process.
• Macro environment remains challenging, but management remains proactive in capital and asset management.
• No evidence of financial reporting errors detected.
• No significant related party or unusual transactions; all disclosures in line with REIT standards.
• Overall, the report signals stable operations, prudent risk management, but limited growth in distributable profits for now.

Conclusion & Analyst Opinion

The 1H FY2025 results for CapitaLand Ascendas REIT are neutral to slightly negative. Operations remain resilient despite a soft topline and lower profit/distribution metrics, mainly due to portfolio rebalancing and macro headwinds. The successful fund raising and continued asset recycling provide a buffer and options for future growth. However, investors should watch for earnings growth, distribution momentum, and macroeconomic risks in the next 12 months.

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