CapitaLand Ascendas REIT's 1H FY25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI declined slightly YoY, mainly due to the decommissioning of Welwyn Garden City in June 2024 and the divestment of several properties across Singapore, Australia, and the US. This was partially offset by the acquisition of DHL Indianapolis Logistics Center in January 2025. Despite the revenue dip, NPI remained relatively stable due to lower property expenses. Distributable income remained flat YoY, while DPU dipped marginally due to an enlarged unit base following the recent private placement.

Rental Reversion

CLAR achieved strong portfolio rental reversions, averaging +9.5% for 1H FY25—driven by +8% in 2Q and +11% in 1Q.

Acquisition

In January 2025, CLAR completed the acquisition of DHL Indianapolis Logistics Center. Separately, two acquisitions—9 Tai Seng Drive and 5 Science Park Drive—were announced in May and are expected to complete in 2H 2025. CLAR also completed the redevelopment of 1, 1A, and 1B Science Park Drive in March 2025.

Divestment

The divestment of Parkside in Portland, US, was completed in June 2025 at a ~45% premium to valuation.

Development & Asset Enhancement Initiative

CLAR is currently undertaking 3 redevelopment projects and 1 acquisition under development project. Summerville Logistics Center and 5 Toh Guan Road East are expected to be completed in 4Q 2025, while 27 IBP and Logis Hub @ Clementi are scheduled for completion in 1Q 2026 and 1Q 2028, respectively. Additionally, two AEIs are ongoing and are expected to be completed in 2H 2025.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Less Favorable
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Committed Occupancy: Moderate
• Highest Annual Lease Expiry in 4 Years: Moderate
• WALE: Less Favorable
• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable
• Cost of Debt: Moderate
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Moderate
• Unsecured Debt Proportion: Favorable
• Highest Annual Debt Maturity in 4 Years: Favorable
• WADM: Moderate

Diversification Profile

• Major Sector Weightage: Favorable
• Top Geographical Weightage: Less Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Manager's Fees over Operating Distributable Income: Favorable
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:
• 95.3% from Operation
• 2.6% from Management Fees Paid in Units
• 2.1% from Income Support

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Committed Occupancy
• Slight Uptrend: None
• Flat: Property Yield, Operating Distribution Proportion
• Slight Downtrend: DPU from Operations, Operating Distributable Income over Manager's Fees
• Downtrend: Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y, 5y & 10y
• P/NAV: Average for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous half-year, gross revenue and NPI remained stable, but distributable income and DPU dipped slightly due to interest expenses. On the debt front, about 12% of borrowings are due for refinancing in the remainder of 2025.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.