CapitaLand Ascendas REIT (CLAR) has reported a distribution per unit (DPU) of 7.477 cents for the 1HFY2025 ended June 30, down 0.6% y-o-y.
Gross revenue for the first half of the year declined 2.0% y-o-y to $754.8 million, and net property income dropped 0.9% y-o-y to $523.4 million.
This has resulted in a total amount available for distribution of $331.1 million, up marginally by 0.1% y-o-y.
The lower DPU is from an enlarged unit base of about 4.4 billion or a 0.7% y-o-y increase, following the issuance of new units as a result of CLAR’s private placement in May to fund acquisitions.
The lower gross revenue was due to divestments of five properties in Australia (February 2024), Singapore (November 2024) and the US (June 2025), as well as the decommissioning of a property in the UK for redevelopment in June 2024.
The decrease was partially offset by the acquisition of a property in the US in January 2025.
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The REIT’s total debt as at June 30 stood at $6.71 billion, and aggregate leverage came in at 37.4%.
As at June 30, about 76% of CLAR’s borrowings are on fixed rates with an average term of 3.7 years. The REIT says that a 50 basis points (bps) increase in interest rate on variable rate debt is expected to have a pro forma impact of $8.2 million decline in distribution or 0.19 cents decline in DPU.
About $235 million of borrowings are due to be refinanced in FY2025, and a 50 bps increase in interest rate on refinancing will have a pro forma impact of $1.2 million decline in distribution or 0.03 cent decline in DPU.
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The REIT’s total overall portfolio occupancy increased 0.3% q-o-q. In Singapore and the US, portfolio occupancy declined 0.4% and 0.7% q-o-q. Meanwhile, Australia saw a 3.9% q-o-q increase in portfolio occupancy.
The REIT’s weighted average lease expiry as at June 30 stood at 3.7 years. It has a customer base with about 1,790 tenants from more than 20 industries.
Total properties as at end June include 229 properties with four investment properties under development.
Units in CLAR closed 6 cents higher or 2.19% up at $2.80 on Aug 4.
