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CapitaLand Ascendas REIT (SG:A17U)
:A17U
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CapitaLand Ascendas REIT
(OTC:A17U)
Rating:76Outperform
Price Target:
S$3.00
▲(9.49%Upside)
Positive Factors
Acquisition
The acquisition of a Tier III colocation data centre in Singapore is attractive due to a strong NPI yield and potential for rental uplift.
Financial Performance
The acquisitions are accretive to the pro forma distribution per unit, enhancing shareholder value.
Portfolio Management
Management sees opportunity for rental uplift upon lease renewal at both properties, with passing rents currently below market rates.
Negative Factors
Interest Rates
A sustained high interest rate environment with further surge in interest rates will negatively impact earnings and dividend distributions.
Revenue
Gross revenue fell 1.1% year-over-year in 2H24 due to the divestment of logistics properties and decommissioning for redevelopment.
CapitaLand Ascendas REIT (A17U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$12.62B
Dividend Yield4.73%
Average Volume (3M)13.48M
Price to Earnings (P/E)15.9
Beta (1Y)0.78
Revenue Growth-1.52%
EPS Growth313.98%
CountrySG
Employees67
SectorReal Estate
Sector Strength55
IndustryREIT - Industrial
Share Statistics
EPS (TTM)N/A
Shares Outstanding4,606,284,700
10 Day Avg. Volume13,329,050
30 Day Avg. Volume13,480,990
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)1.15
Price to Sales (P/S)0.00
P/FCF Ratio15.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$3.29Price Target Upside20.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
CapitaLand Ascendas REIT Business Overview & Revenue Model
Company DescriptionCapitaLand Ascendas REIT (A17U) is a leading real estate investment trust in Singapore, focusing on owning and managing a diversified portfolio of income-producing industrial, business space, logistics, and data center properties. The REIT is part of CapitaLand Investment Limited, a prominent real estate group in Asia, and is listed on the Singapore Exchange. With a strong presence in Singapore and growing investments in markets such as Australia, the United States, and the United Kingdom, CapitaLand Ascendas REIT aims to deliver sustainable income growth and long-term value to its unitholders.
How the Company Makes MoneyCapitaLand Ascendas REIT generates revenue primarily through the rental income from its portfolio of properties, which includes industrial facilities, business parks, logistics centers, and data centers. These properties are leased to a diverse range of tenants across various sectors, providing a stable and recurring income stream. Additionally, the REIT actively manages its portfolio through strategic acquisitions, divestments, and asset enhancement initiatives to optimize returns. CapitaLand Ascendas REIT also benefits from its association with CapitaLand Investment Limited, leveraging its expertise and extensive network for operational and growth opportunities. Furthermore, the REIT may engage in joint ventures or partnerships to expand its asset base and enhance its revenue potential.
CapitaLand Ascendas REIT Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q2-2024)
| % Change Since: 5.26%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally balanced view with a mix of positive financial growth metrics, strong asset performance, and challenges in specific regions, particularly in the U.S. Despite higher revenue and distributable income, challenges like the decline in DPU and occupancy issues in the U.S. were noted.Q2-2024 Updates
Positive Updates
Positive Distributable Income Growth
Distributable income increased by 1.1% to $313.8 million in the first half of FY 2024.
Gross Revenue Increase
Gross revenue increased by 7.2% to $770.1 million compared to the first half of FY 2023.
High Portfolio Occupancy and Rental Reversion
Portfolio occupancy remained high at 93.2%, with a rental reversion of 13.4% for leases renewed in the first half.
Healthy Gearing and Cost of Debt
Gearing is healthy at 37.8% and the cost of debt remains stable at 3.7%.
Successful Asset Enhancement Initiatives (AEI)
Completed AEI at Pacific Tech Centre increased occupancy from 83.7% to 92.4%.
Negative Updates
Decline in DPU
DPU declined by 2.5% to $0.07524 due to a larger unit base.
Occupancy Challenges in the U.S.
Occupancy in the U.S. declined to 87.7% due to lease expirations in Kansas City and Portland.
Interest Expense Impact
Higher interest expenses due to high interest rates and additional borrowings impacted the financial results.
Pressure on U.S. Office Occupancy
Continued pressure on U.S. office occupancy due to macro-structural trends and work-from-home phenomena.
Company Guidance
During the Q2 2024 earnings call for CapitaLand Ascendas REIT (CLAR), the management provided several key performance metrics and forward guidance. Distributable income for the first half of FY 2024 increased by 1.1% to $313.8 million, while the Distribution Per Unit (DPU) decreased by 2.5% to $0.07524. The REIT's investment properties held steady at $16.87 billion, with a portfolio occupancy rate of 93.2% and a rental reversion of 13.4%. The gearing ratio was healthy at 37.8%, and the cost of debt remained stable at 3.7%. When comparing the first half of FY 2024 to the first half of FY 2023, gross revenue rose by 7.2% to $770.1 million, and Net Property Income (NPI) increased by 3.9% to $528.4 million. For the second half of FY 2024, CLAR anticipates rental reversion in the high single-digit range and plans to distribute dividends of $0.07524 per unit on September 2. Additionally, the company reported a positive rental reversion of 11.7% for the first half of the year, with the highest demand coming from sectors such as engineering, IT, and data centers in Singapore, and financial services and biomedical sectors overseas.CapitaLand Ascendas REIT Financial Statement Overview
Summary
CapitaLand Ascendas REIT demonstrates strong financial health with robust revenue growth and profitability, supported by a solid balance sheet and strong cash flows. While leverage levels are manageable, attention to debt levels is recommended. The absence of EBIT data for 2024 is a limitation, but overall, the company shows sound financial performance and resilience in the REIT industry.Income Statement
CapitaLand Ascendas REIT has demonstrated strong revenue growth, with a notable increase of 3% from 2023 to 2024. The gross profit margin remained robust at approximately 68.9%, indicating effective cost management. The net profit margin for 2024 was a strong 50.2%, showcasing high profitability. However, the absence of EBIT for 2024 limits a complete analysis of operational efficiency.85
Very Positive
Balance Sheet
The balance sheet is solid, with a relatively stable equity base and a debt-to-equity ratio of 0.69, indicating moderate leverage. The equity ratio stands at 56.4%, suggesting a healthy capital structure. However, the incremental increase in total debt requires monitoring to ensure it doesn't impact financial flexibility adversely.75
Positive
Cash Flow
Operating cash flow remains strong, covering net income with a high operating cash flow to net income ratio. Free cash flow has been consistent, underscoring the company's ability to generate cash beyond its capital expenditures. The stability in free cash flow growth indicates sound cash management practices.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.52B | 1.48B | 1.32B | 1.23B | 1.05B |
| Gross Profit | 1.05B | 936.08M | 843.50M | 835.98M | 721.85M |
| EBITDA | 1.01B | 422.56M | 967.33M | 890.83M | 681.60M |
| Net Income | 764.11M | 168.27M | 760.39M | 957.04M | 457.08M |
Balance Sheet | |||||
| Total Assets | 18.27B | 18.27B | 17.88B | 17.73B | 15.12B |
| Cash, Cash Equivalents and Short-Term Investments | 167.74M | 221.58M | 217.02M | 368.55M | 277.98M |
| Total Debt | 7.15B | 7.17B | 7.09B | 6.99B | 5.59B |
| Total Liabilities | 7.96B | 8.05B | 7.91B | 7.75B | 6.23B |
| Stockholders Equity | 10.31B | 10.22B | 9.97B | 9.98B | 8.89B |
Cash Flow | |||||
| Free Cash Flow | 947.69M | 956.28M | 728.26M | 483.17M | 509.95M |
| Operating Cash Flow | 947.69M | 956.28M | 854.11M | 597.61M | 584.45M |
| Investing Cash Flow | -61.65M | -925.71M | -376.82M | -1.92B | -994.73M |
| Financing Cash Flow | -944.88M | -28.18M | -615.99M | 1.42B | 632.87M |
CapitaLand Ascendas REIT Technical Analysis
Positive
2.74
Price Trends
2.60
Positive
2.56
Positive
2.54
Positive
Market Momentum
0.04
Negative
70.97
Negative
93.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A17U, the sentiment is Positive. The current price of 2.74 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.60, and above the 200-day MA of 2.54, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.97 is Negative, neither overbought nor oversold. The STOCH value of 93.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:A17U.
CapitaLand Ascendas REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | S$3.38B | 14.77 | 5.22% | 8.02% | 3.18% | -0.50% | |
76 Outperform | S$12.62B | 15.95 | 7.61% | 4.73% | -1.52% | 313.98% | |
76 Outperform | $5.82B | 17.26 | 6.85% | 6.59% | 1.34% | 195.50% | |
70 Outperform | $3.24B | 24.09 | 3.21% | 8.95% | 11.98% | ― | |
64 Neutral | $7.01B | 18.92 | -1.36% | 6.84% | 4.67% | -25.39% | |
62 Neutral | S$5.99B | 32.33 | 2.74% | 1.64% | -0.97% | -40.20% | |
54 Neutral | S$1.95B | ― | -6.38% | 0.45% | -4.01% | -66.90% |
* Real Estate Sector Average
Performance Comparison
SG:A17U
CapitaLand Ascendas REIT
2.74
0.39
16.74%
SG:HMN
Ascott Residence
0.89
0.06
7.80%
SG:ME8U
Mapletree Industrial
2.04
0.06
2.87%
SG:9A4U
ESR-REIT
2.43
-0.11
-4.22%
SG:M44U
Mapletree Logistics
1.18
>-0.01
-0.08%
SG:BUOU
Frasers Logistics & Commercial Trust
0.86
>-0.01
-0.69%
CapitaLand Ascendas REIT Corporate Events
CapitaLand Ascendas REIT Issues Units for Management Fee Payment
Jun 16, 2025
CapitaLand Ascendas REIT Management Limited announced the issuance of 3,323,631 units to CLI RE Fund Investments Pte. Ltd. as part of the payment for its base management fee for the period from December 2024 to May 2025. This decision reflects the company’s strategic approach to managing its financial obligations and maintaining operational efficiency, potentially impacting its market positioning and stakeholder relations.
The most recent analyst rating on (SG:A17U) stock is a Buy with a S$3.10 price target. To see the full list of analyst forecasts on CapitaLand Ascendas REIT stock, see the SG:A17U Stock Forecast page.
CapitaLand Ascendas REIT Holds Annual General Meeting
May 19, 2025
CapitaLand Ascendas REIT held its Annual General Meeting at Marina Bay Sands Expo and Convention Centre, where key management and board members were present. This meeting underscores the company’s commitment to transparency and stakeholder engagement, potentially strengthening its position in the real estate investment sector.
The most recent analyst rating on (SG:A17U) stock is a Buy with a S$3.05 price target. To see the full list of analyst forecasts on CapitaLand Ascendas REIT stock, see the SG:A17U Stock Forecast page.
CapitaLand Ascendas REIT Allocates Additional Funds for Logistics Property Redevelopment
Apr 28, 2025
CapitaLand Ascendas REIT has announced the utilization of an additional S$1.2 million from its private placement proceeds, totaling approximately S$500 million, to partially finance the redevelopment of a logistics property in Singapore. This move is part of the company’s strategic efforts to enhance its property portfolio, which includes the acquisition of Seagate’s Singapore R&D facility and potential acquisition of key assets, thereby strengthening its market position in the logistics and industrial real estate sector.
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.