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CapitaLand Ascendas REIT (SG:A17U)
SGX:A17U
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CapitaLand Ascendas REIT
(SGX:A17U)
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Rating:71Outperform
Price Target:
S$3.00
â–²(7.53% Upside)
CapitaLand Ascendas REIT's overall score is driven by strong financial performance and positive technical indicators. The company's profitability and cash flow management are commendable, but the decline in revenue growth and challenges in the U.S. market pose risks. The valuation is reasonable, supported by a solid dividend yield.
Positive Factors
Strong Cash Flow Management
Strong cash flow management enhances financial flexibility, allowing for strategic investments and debt management, supporting long-term growth.
High Portfolio Occupancy
High occupancy rates indicate strong demand for properties, ensuring stable rental income and supporting long-term revenue stability.
Sustainability Initiatives
Commitment to sustainability through green financing aligns with global trends, enhancing brand reputation and attracting ESG-focused investors.
Negative Factors
Revenue Decline
Significant revenue decline can impact profitability and limit reinvestment capacity, posing a risk to long-term financial health.
U.S. Market Challenges
Challenges in the U.S. market, such as declining occupancy, can affect overall portfolio performance and limit growth opportunities.
Distribution Income Decline
Declining distribution income may affect investor returns and reduce attractiveness to income-focused investors, impacting capital inflows.
CapitaLand Ascendas REIT (A17U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$12.90B
Dividend Yield5.43%
Average Volume (3M)12.25M
Price to Earnings (P/E)17.5
Beta (1Y)0.66
Revenue Growth2.35%
EPS Growth365.31%
CountrySG
Employees67
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)N/A
Shares Outstanding4,608,727,000
10 Day Avg. Volume9,240,961
30 Day Avg. Volume12,247,945
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.10
Price to Sales (P/S)7.42
P/FCF Ratio11.92
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue12.72
Enterprise Value/Gross Profit18.35
Enterprise Value/Ebitda18.89
Forecast
1Y Price Target
$3.23Price Target Upside15.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CapitaLand Ascendas REIT Business Overview & Revenue Model
Company DescriptionCapitaLand Ascendas REIT engages in the investment in a diverse portfolio of properties and property related assets. It operates through the following segments: Business and Science Park Properties and Suburban Offices; Integrated Development, Amenities, and Retail Properties; High-Specifications Industrial Properties and Data Centres; Light Industrial Properties and Flatted Factories; and Logistics and Distribution Centres. The company was founded on October 9, 2002 and is headquartered in Singapore.
How the Company Makes MoneyCapitaLand Ascendas REIT generates revenue primarily through rental income from its extensive portfolio of properties. The trust leases its properties to a variety of tenants, including multinational corporations, logistics firms, and technology companies, which provides a diverse revenue base. In addition to rental income, the REIT may also earn income from property management services and ancillary services related to its properties. Significant partnerships with key tenants and strategic acquisitions of high-demand properties further enhance its revenue-generating capacity. The REIT's focus on high-growth sectors such as logistics and data centers positions it well to benefit from increasing demand in these areas, contributing to its overall earnings.
CapitaLand Ascendas REIT Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive aspects such as high occupancy, successful acquisitions, and positive rental reversion across geographies. However, there were challenges like revenue and net property income decline, distribution income decrease, and occupancy issues in the U.S. office market.Q2-2025 Updates
Positive Updates
Portfolio Occupancy and Rental Reversion
Portfolio occupancy remained high at 91.8%, with a high rental reversion of 9.5% for leases renewed in the first half.
Healthy Gearing and Debt Management
Gearing is healthy at 37.4%, with a stable cost of debt at 3.7%. The debt expiry profile is well spread out, with about $900 million due for refinancing per annum.
Acquisition and Redevelopment Success
The acquisition of DHL Logistics Center in the U.S. and the redevelopment of 1 Science Park Drive were completed, with a total development cost of about $884 million. Plans are set to add another $725 million of interim producing assets in Singapore.
Positive Rental Reversion Across Geographies
The total portfolio achieved a positive rental reversion of 8%, with Singapore at 7.8%, U.S. at 10.9%, and Australia at 3.5%.
Successful Divestment
Divested Parkside business-based property in the U.S. at a 45% premium to market valuation.
Negative Updates
Revenue and Net Property Income Decline
Gross revenue in the first half decreased by about 2% to $755 million, and NPI declined slightly by 0.9% to $1 billion due to lower operating expenses.
Distribution Income and DPU Decline
Distribution income decreased 2% to $231.1 million due to higher interest expense, and DPU declined slightly.
U.S. Occupancy Challenges
Occupancy in the U.S. declined 0.7% to 87.3% due to an expiry of a lease in a logistics property in Kansas City.
Potential Downside in U.S. Office Market
The U.S. office market continues to face challenges, with potential downside expected in the second half.
Company Guidance
During the call, several key metrics were highlighted, providing comprehensive guidance on the company's financial and operational performance. Portfolio occupancy remained high at 91.8%, with a positive rental reversion of 9.5% for leases renewed in the first half. Gearing was maintained at a healthy 37.4%, and the cost of debt stayed stable at 3.7%. Gross revenue in the first half decreased by 2% to $755 million, mainly due to property divestments in Singapore, Australia, and the U.S., though was partly offset by acquiring a DHL Logistics property in the U.S. Net property income (NPI) dipped slightly by 0.9% to $1 billion, while distribution income was stable at $331.1 million. Distribution per unit (DPU) slightly decreased to $7.477 due to an increase in the number of units. The company completed $1.2 billion in acquisitions, including the DHL Logistics Center in Indianapolis, and completed redevelopment projects with a total development cost of about $884 million. The portfolio's occupancy rates across different geographies varied, with Singapore at 91.2%, the U.S. at 87.3%, Australia increasing to 93.1%, and the U.K. and Europe stable at 98.9%. The company expects to maintain its cost of debt around 3.7% and plans to divest $300 million to $400 million worth of assets within the year.CapitaLand Ascendas REIT Financial Statement Overview
Summary
CapitaLand Ascendas REIT demonstrates strong profitability and cash flow management, with a high net profit margin and robust free cash flow growth. However, the significant decline in revenue growth is a concern. The balance sheet is stable with moderate leverage, supporting long-term financial health.Income Statement
CapitaLand Ascendas REIT shows strong profitability with a high net profit margin of 50.17% and a solid EBIT margin of 66.56% for 2024. However, the revenue growth rate is negative at -60.3%, indicating a significant decline in revenue compared to the previous year. Despite this, the company maintains a healthy gross profit margin of 68.94%.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.69, indicating a balanced approach to leveraging. The return on equity is reasonable at 7.41%, showing effective use of equity to generate profits. The equity ratio stands at 56.45%, highlighting a strong equity base relative to total assets.70
Positive
Cash Flow
The cash flow statement reveals robust free cash flow growth of 76.34% in 2024, suggesting improved cash generation capabilities. The operating cash flow to net income ratio is 0.62, indicating efficient conversion of income into cash. The free cash flow to net income ratio is strong at 1.0, demonstrating effective cash management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.51B | 1.52B | 1.48B | 1.35B | 1.23B | 1.05B |
| Gross Profit | 1.04B | 1.05B | 936.08M | 843.50M | 835.98M | 721.85M |
| EBITDA | 1.01B | 1.01B | 920.38M | 967.33M | 890.83M | 681.60M |
| Net Income | 708.66M | 764.11M | 168.27M | 760.39M | 957.04M | 457.08M |
Balance Sheet | ||||||
| Total Assets | 18.44B | 18.27B | 18.27B | 17.88B | 17.73B | 15.12B |
| Cash, Cash Equivalents and Short-Term Investments | 180.95M | 167.74M | 221.58M | 217.02M | 368.55M | 277.98M |
| Total Debt | 7.16B | 7.15B | 7.17B | 7.09B | 6.99B | 5.59B |
| Total Liabilities | 8.04B | 7.96B | 8.05B | 7.61B | 7.45B | 5.93B |
| Stockholders Equity | 10.39B | 10.31B | 10.22B | 9.97B | 9.98B | 8.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 947.69M | 956.28M | 728.26M | 483.17M | 509.95M |
| Operating Cash Flow | 988.22M | 947.69M | 956.28M | 854.11M | 597.61M | 584.45M |
| Investing Cash Flow | -356.36M | -61.65M | -925.71M | -376.82M | -1.92B | -985.39M |
| Financing Cash Flow | -625.51M | -944.88M | -28.18M | -615.99M | 1.28B | 478.50M |
CapitaLand Ascendas REIT Technical Analysis
Neutral
2.79
Price Trends
2.83
Negative
2.78
Positive
2.66
Positive
Market Momentum
>-0.01
Positive
40.57
Neutral
40.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A17U, the sentiment is Neutral. The current price of 2.79 is below the 20-day moving average (MA) of 2.84, below the 50-day MA of 2.83, and above the 200-day MA of 2.66, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:A17U.
CapitaLand Ascendas REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.58B | 15.79 | 5.16% | 6.50% | 1.47% | -7.50% | |
72 Outperform | S$3.66B | 17.84 | 4.77% | 7.52% | 2.01% | 38.17% | |
71 Outperform | $12.90B | 17.54 | 6.96% | 5.43% | 2.35% | 365.31% | |
69 Neutral | S$5.79B | 17.45 | 6.70% | 6.54% | -1.96% | 175.59% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $6.72B | 31.73 | 3.18% | 5.92% | -1.81% | -18.43% | |
56 Neutral | S$2.21B | -19.34 | -4.88% | 6.81% | 10.51% | -40.93% |
* Real Estate Sector Average
SG:A17U
CapitaLand Ascendas REIT
2.79
0.38
15.58%
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CapitaLand Ascendas REIT Corporate Events
CapitaLand Ascendas REIT Issues Units for Acquisition Fees
Sep 10, 2025
CapitaLand Ascendas REIT has issued 2,442,528 new units to its manager, CapitaLand Ascendas REIT Management Limited, as payment for acquisition fees related to the recent purchase of properties at 5 Science Park Drive and 9 Tai Seng Drive in Singapore. These units, issued at prevailing market prices, reflect the trust’s adherence to its Trust Deed and regulatory requirements, and they cannot be sold within a year of issuance. This issuance increases the total number of units to 4,608,727,268, with the manager holding a small percentage, indicating a strategic expansion in its property portfolio.
CapitaLand Ascendas REIT Issues S$700 Million Green Notes
Aug 27, 2025
CapitaLand Ascendas REIT has announced the issuance of S$700 million 2.343% Green Notes due 2032 under its Euro Medium Term Securities Programme. The proceeds from these notes will be used to refinance existing borrowings related to eligible green projects, aligning with the company’s sustainability goals. This issuance, rated ‘A3’ by Moody’s, highlights the company’s commitment to sustainable finance and strengthens its financial position in the market.
CapitaLand Ascendas REIT Holds Key Extraordinary General Meeting
Aug 26, 2025
CapitaLand Ascendas REIT recently held an Extraordinary General Meeting at Marina Bay Sands Expo and Convention Centre, attended by its unitholders and key management personnel. The meeting was significant for discussing strategic decisions impacting the REIT’s operations and future direction, potentially influencing its market positioning and stakeholder interests.
CapitaLand Ascendas REIT Issues S$300 Million Green Perpetual Securities
Aug 15, 2025
CapitaLand Ascendas REIT has issued S$300 million in Fixed Rate Subordinated Green Perpetual Securities under its S$7 billion Euro Medium Term Securities Programme. The issuance, managed by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, aims to refinance existing borrowings and enhance the company’s financial flexibility. The securities, which offer a 3.18% distribution rate until 2030, are part of the company’s strategy to strengthen its capital structure and maintain its competitive position in the real estate investment sector.
CapitaLand Ascendas REIT Appoints New Company Secretary
Aug 8, 2025
CapitaLand Ascendas REIT Management Limited has announced the appointment of Mr. Lee Wei Hsiung as the new Company Secretary, effective from August 8, 2025. This change in leadership is expected to enhance the management team and potentially influence the company’s operational strategies, impacting its market positioning and stakeholder relations.
CapitaLand Ascendas REIT Allocates Private Placement Proceeds for Strategic Acquisitions and Debt Repayment
Jul 31, 2025
CapitaLand Ascendas REIT has announced the use of proceeds from its recent private placement, where approximately S$500 million was raised. The funds are being allocated for debt repayment and the partial financing of acquisitions of properties at 9 Tai Seng Drive and 5 Science Park Drive. This strategic deployment of capital is expected to enhance the company’s asset portfolio and strengthen its financial position, potentially impacting its market standing and offering value to its stakeholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.