CapitaLand Ascendas REIT reports a 3.5% increase in DPU for FY2022, with a 10-year high in occupancy

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Read more: 2023 will witness a further improvement in prime retail rents, with Orchard Road setting the pace

2023 will witness a further improvement in prime retail rents, with Orchard Road setting the pace

CapitaLand Ascendas REIT (CLAR) has reported 3.5% higher y-o-y distribution per unit (DPU) to 15.798 cents, supported by the fact that portfolio occupancy reached an all-time high that was 94.6% in FY20222 ended December.

Reit’s DPU for the 2HFY2022 year grew to 4.3% y-o-y to 7.925 cents.

The FY2022 gross revenue grew in FY2022 by 10.3% y-o-y to $1.35 billion. The net property earnings (NPI) increased by 5.2% y-o-y to $968.8 million.

The total amount of distribution increased by 5.4% y-o-y to $663.9 million.

CLAR concluded $223.4 million worth of acquisitions by 2022. The money was used to fund 3 acquisitions within both the US and Australia logistical sector.

In Australia two recently constructed logistics properties 500 Green Road ($69.1 million) located in Brisbane in addition to the 7 Kiora Crescent ($21.1 million) located in Sydney The properties were purchased in February 2022. In the US seven last mile logistical properties situated in Chicago were purchased for $133.2 million in June 2022.

At the time of December 31st 2022 the CLAR’s $16.4 billion portfolio included an existing customer base that included over 1,720 customers. The portfolio is spread throughout Singapore (62%), the US (15%), Australia (14%) and the European Union/UK (9%).

Investment properties of CLAR’s 227 properties are located in three distinct categories: Business Space and Life Sciences (48%), Logistics (25%) and Industrial and Data Centres (27%).

CLAR has achieved positive rental reversions at 8.0% for leases renewed in multi-tenant buildings between 2022 and 2023.

Portfolio’s Weighted Average Lease Expiry (WALE) duration was 3.8 years. Around 21.0% of CLAR’s gross rental income is due to be renewed in FY2023.

As of December 31st, 2022, the aggregate leverage was stable in the range of 36.3% from 35.9% in the same period last year.

The country has an average of% of borrowings being at a fixed rates CLAR’s weighted mean the all-in costs of borrowing climbed by 2.5% in FY2022 from 2.2% in FY2021 despite an increase in interest rates around the world.

William Tay, CEO and executive director of the manager states: “We achieved strong results across all portfolios despite the uncertainty of macroeconomic conditions… Going forward, we’ll continue to leverage our solid financial position as well as our operational capabilities and diverse portfolio to ensure the safety and expansion of our businesswhile taking an empathetic approach in the face of constant uncertainty in the global economy as well as the economic environment for interest rates.”

CLAR’s units CLAR were up 4 cents (or 1.38% up, at $2.94 on February 2.