CLAR's FY2024 DPU rose by 0.3% y-o-y to 15.205 cents with 2H2024 DPU rising by 2.1% to 7.681 cents. !2 month trailing ICR rose marginally and year-end aggregate leverage fell marginally.

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.

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.