CapitaLand Ascendas REIT Management Limited, the manager of CapitaLand Ascendas REIT (CLAR), reported a strong financial performance for the first half of 2024, with significant focus on enhancing its Singapore portfolio. Gross revenue increased by 7.2% year-on-year to S$770.1 million, driven by acquisitions and newly completed properties.
Chief Executive Officer William Tay highlighted the REIT’s diverse and resilient portfolio as key to its solid performance, with distributable income up 1.0% to S$330.8 million. However, Distribution Per Unit (DPU) fell by 2.5% to 7.524 Singapore cents due to an enlarged unit base.
CLAR launched two new asset enhancement initiatives (AEIs) in Singapore, investing a total of S$24.2 million. The S$22.7 million AEI at Aperia will upgrade drop-off points and entrances and improve the retail mall layout, expected to complete in 4Q 2025. The S$1.5 million refurbishment at ONE@Changi City aims to modernize the South Tower lobby, with completion expected in 3Q 2024. These projects are part of six ongoing redevelopments and AEIs worth S$572.8 million.
As of June 30, 2024, CLAR’s S$16.9 billion portfolio spans Singapore, Australia, the US, and the UK/Europe, with a healthy 93.1% occupancy rate. In Singapore alone, the portfolio is valued at S$10.8 billion. The REIT secured S$600 million in green financing, increasing its total green financing to approximately S$2.7 billion. Aggregate leverage remains healthy at 37.8%, supported by a stable cost of borrowing and an A3 credit rating from Moody’s.
CLAR is committed to sustainability, targeting 45% of landlord electricity consumption from renewable sources by 2030. Solar panels were installed at three more properties in Singapore in 1H 2024, increasing the number of solar-equipped properties to 25. Overall, 47% of the portfolio is now green certified.
Despite global economic uncertainties, CLAR is well-positioned for growth, focusing on redevelopment and strategic acquisitions to maximize returns and deliver sustainable value to unitholders.
