The manager CapitaLand Ascendas REIT(CLAR) has reported a portfolio occupancy of 91.5% for the 1QFY2025 ended March 31, 2025, down from the 92.8% in the previous quarter.
In the REIT's business update for this quarter, its portfolio rental reversion came in at 11%, down from the 16% in the same period a year ago. However, this figure is higher than the 8.6% rental reversion reported in 4QFY2024.
The REIT expects rental reversion for FY2025 to be in the positive mid-single digit range.
For the 1QFY2025, the REIT's weighted average lease expiry (WALE) stood at 3.8 years, while the weighted average lease term of new leases signed in 1QFY2025 was 3.4 years.
About 12.6% of its gross rental income is due for renewal in FY2025.
The REIT's aggregate leverage stood at 38.9% as at March 31. Net debt came in at 8.1 times, and interest coverage ratio at 3.6 times.
The REIT's fixed rate debt as a percentage of total debt came in at 73.6% as at March 31, and weighted average all in debt cost was 3.6%.
About $365 million of borrowings are due to be refinanced in FY2025, and a 50 basis points (bps) increase in interest rate on refinancing is expected to have a pro forma impact of $1.8 million decline in distribution or 0.04 cents decline in distribution per unit (DPU)
About 74% of the REITs borrowings are on fixed rates with an average term of 3.7 years, and a 50 bps increase in interest rate on variable rate debt is expected to have a pro forma impact of $9.1 million decline in distribution or 0.21 cents decline in DPU.
About six projects worth $498.4 million are undergoing development, redevelopment and refurbishment to improve returns of the existing portfolio, including developments in the US and Singapore across the logistics, industrial, data centre, business space and life sciences segments.
The manager of CLAR says that it has a well-diversified portfolio and large customer base of ~1,780 tenants in more than 20 different industries.
The manager is committed to maintain a prudent capital management strategy, and will continue to track the situation closely, and adopt a conservative and cautious stance to navigate through the challenges ahead.
Units in CapitaLand Ascendas REIT closed 2 cents higher or 0.752% up at $2.68 on Apr 28.
