CapitaLand Ascendas REIT’s (CLAR) FY2024 DPU rose 0.3% to 15.205 cents on a 2.2% y-o-y rise in distributable income to $668.8 million, and despite a 1.9% increase in the number of units. In 2H2024 DPU improved by 2.1% y-o-y to 7.681 cents.
For the full year, revenue rose by 2.9% to $1,523 million while net property income rose by 2.6% to $1,049.9 million.
Aggregate leverage as at Dec 31 was a tad lower at 37.7% from the end-June level of 37.8% and interest coverage ratio (ICR) was a tad higher at 3.6x for the latest trailing 12 months compared to 3.5x for the trailing 12 months to end-June 2024. ICR remains robust even under stress scenarios. A 10% decrease in Ebitda or a 100 basis points (bps) rise in weighted average interest rates leads to an ICR of 3.3x and 2.8x respectively.
The high proportion of fixed rate debt at 82.7% as at end-Dec and a well-spread debt maturity profile of 3.5 years resulted in CLAR’s weighted average all-in borrowing cost increasing only marginally to 3.7% per annum (FY2023: 3.5%) despite the high interest rate environment.
A high level of natural hedge of approximately 76% for its overseas investments, which accounted for about 34% ($5.7 billion) of total investment properties valued at $16.8 billion, was maintained. This minimises the impact of any adverse exchange rate fluctuations.
In FY2024, CLAR spent $248.2 million on two logistics properties in the US. They are the development of Summerville Logistics Center, Charleston for $94.8 million and a sale-and-leaseback property, DHL Indianapolis Logistics Center, for $153.4 million. The development of Summerville Logistics Center is expected to be completed in 4Q2025 while the acquisition of DHL Indianapolis Logistics Center was completed in January 2025.
See also: Jardine Matheson posts loss of US$468 mil, but underlying net profit stood at US$1.47 bil
CLAR’s manager completed two asset enhancement initiatives (AEIs) totalling $3.9 million at Pacific Tech Centre and ONE@Changi City in Singapore. There are eight projects comprising a development, four redevelopments and three AEIs, worth $803.6 million, scheduled for completion between 1Q2025 and 1Q2028. One of the new projects is the redevelopment of Logis Hub @ Clementi in Singapore costing $136.2 million. These properties will add to CLAR’s NPI progressively.
