CapitaLand Ascendas REIT 1H 2025 Financial Analysis

Key Financial Metrics (Year-on-Year and Quarter-on-Quarter)

• Gross Revenue: S\$754.8 million (1H 2025), down 2.0% YoY from S\$770.1 million (1H 2024) [[1]].
• Net Property Income (NPI): S\$523.4 million (1H 2025), down 0.9% YoY from S\$528.4 million (1H 2024) [[1]].
• Distributable Income (DI): S\$331.1 million (1H 2025), up 0.1% YoY from S\$330.8 million (1H 2024) [[1]].
• DPU (Distribution Per Unit): 7.477 cents (1H 2025), down 0.6% YoY from 7.524 cents (1H 2024) [[1]].
• Portfolio Occupancy Rate: 91.8% as of 30 June 2025 (vs. 91.5% as of 31 March 2025) [[3]].
• Aggregate Leverage: 37.4% as of 30 June 2025 (improved from 38.9% as of 31 March 2025) [[4]].
• Weighted Average Lease Expiry (WALE): 3.7 years as of 30 June 2025 [[4]].
• Weighted Average All-in Cost of Debt: 3.7% in 1H 2025 (vs. 3.6% in 1Q 2025) [[4]].
• Interest Coverage Ratio (ICR): 3.7x, well above the statutory limit of 1.5x [[4]].
• No. of Properties: 229 as at 30 June 2025, unchanged from previous period [[1]].
• No. of Units: 4,428 million (1H 2025), up from 4,397 million (1H 2024) due to new issuance [[1]].
• Average Rental Reversion: 9.5% for 1H 2025; 8.0% for 2Q 2025 [[4]].

Historical Performance & Comparisons

• Gross revenue and NPI have declined YoY due to divestments and decommissioning of properties. However, distributable income remained stable, reflecting disciplined cost and capital management [[2]].
• DPU decreased slightly YoY, mainly due to an enlarged unit base following new equity issuance [[2]].
• Quarter-on-quarter, occupancy rate improved slightly (91.8% vs. 91.5%) [[3]]. Leverage improved after equity raising [[4]].

Asset Revaluation or Delay

• There is no explicit mention of asset revaluation or any delay of such activity in the report.

Exceptional Earnings and Expenses

• The sale of Parkside in Portland, US, at S\$26.5 million was at a 45% premium to its previous independent market valuation, suggesting an exceptional gain on divestment [[3]].

Timing of Profit or Loss Recognition

• No indication of early or delayed booking of profit or losses in the report.

Chairman/CEO Statement (Full Extract & Commentary)

“Despite the ongoing macroeconomic uncertainties, CLAR’s distributable income of S\$331.1 million and DPU of 7.477 cents for 1H 2025 were stable. This underscores the continued strength of our diversified portfolio, operational management and disciplined execution of our capital management strategies.”

“CLAR is set to add approximately S\$725 million of prime, income-producing assets in Singapore. 9 Tai Seng Drive, a Tier III colocation data centre and 5 Science Park Drive, a premium business space property are well-located, modern properties that are fully leased to reputable tenants and will contribute positively to our income stream. These two properties will further anchor CLAR in Singapore, with Singapore accounting for about 67% of AUM when the transactions are completed,” Mr Tay added. “We will stay responsive to changing market conditions and are confident of navigating through these uncertain times.” [[2]]

• Commentary: The statement is positive, highlighting portfolio strength, disciplined management, and future accretive acquisitions. The CEO expresses confidence in navigating uncertainties and growing the portfolio.

Directors’ Pay

• There is no mention of directors’ remuneration in the report.

Potential Divestment or Listing for More Funds

• There is mention of ongoing divestment (Parkside, Portland, US) and capital recycling as part of the strategy [[3]].
• Equity fundraising of S\$500 million in May 2025 via private placement is noted [[4]].

Macroeconomic and Regulatory Risks

• The report mentions macroeconomic uncertainties, such as global trade tensions, inflation, and monetary policy changes, as potential risks. No specific mention of natural disasters, disputes, court cases, or tax benefit changes as of this report [[5],[7]].

New Shares Issuance, Dilution, or Buyback

• There was a private placement in May 2025, increasing the number of units by 0.7% (from 4,397 million to 4,428 million), leading to dilution [[1]].
• No mention of share buybacks or buyback mandates.

Unusual Flow of Funds or Related Party Transactions

• No unusual flow of funds or related party transactions are disclosed in the report.

Sudden Big Jump in Net Profit, Revenue, or EPS

• No sudden jumps. Revenue and NPI decreased slightly YoY. Distributable income is stable [[1]].

Dividend Proposal and Comparison

• Proposed Dividend: DPU of 7.477 cents for 1H 2025, which is a 0.6% decrease from 7.524 cents in 1H 2024 [[1]].
• Quarterly Comparison: Not explicitly provided, but DPU for the period from 1 January 2025 to 5 June 2025 was 6.479 cents paid on 30 June 2025 [[1]].

Other Proposed Corporate Actions

• No other corporate actions (such as mergers, demergers, or spinoffs) are mentioned.

Forecasted Events and Developments

• Completion of acquisitions of 9 Tai Seng Drive and 5 Science Park Drive in 2H 2025 is expected to enhance income [[2]].
• Ongoing AEIs and redevelopments, with S\$498.4 million invested in projects scheduled for completion between 3Q 2025 and 1Q 2028 [[3]].
• Continued focus on sustainability (green-certified properties and solar panel installation) [[5]].

Investor Highlights

• Stable distributable income and DPU despite macroeconomic headwinds.
• Healthy occupancy rates and diversified tenant base.
• Strong balance sheet with moderate leverage and high interest coverage.
• Ongoing acquisitions and redevelopments expected to enhance future returns.
• Commitment to sustainability and portfolio quality improvement.
• No evidence of accounting errors, unusual expenses, or related party abuses.

Insights & Conclusion

• The report indicates a stable and resilient operating performance with prudent capital management. The REIT is actively recycling capital, completing accretive acquisitions, and redeveloping assets to drive long-term value. The slight decrease in DPU is due to an enlarged unit base, not operational weakness.
• Macroeconomic risks and uncertainties remain, but the REIT’s diversified portfolio, strong financial metrics, and proactive management inspire confidence.
• No red flags regarding errors, unusual transactions, or aggressive profit recognition.
• Overall: The outlook is positive, with manageable risks and clear growth initiatives in place.

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