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CapitaLand Ascendas REIT (SG:A17U)
SGX:A17U
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CapitaLand Ascendas REIT
(SGX:A17U)
Rating:72Outperform
Price Target:
S$3.00
▲(11.94% Upside)
Positive Factors
Acquisitions
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 Management
Prudent capital management with aggregate leverage stable at 37.4% and a healthy interest coverage ratio of 3.7x.
Rental Performance
CLAR achieved a positive average rental reversion of 8% for leases renewed in Singapore and the US.
Negative Factors
Earnings
CapitaLand Ascendas REIT reported a DPU of 7.477 S cents for 1H25, which is slightly below expectations.
Economic Risks
Potential downside risks include a protracted economic downturn affecting rent pricing.
CapitaLand Ascendas REIT (A17U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$12.44B
Dividend Yield5.66%
Average Volume (3M)13.23M
Price to Earnings (P/E)16.9
Beta (1Y)0.71
Revenue Growth2.35%
EPS Growth365.31%
CountrySG
Employees67
SectorReal Estate
Sector Strength48
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.07
Shares Outstanding4,606,284,700
10 Day Avg. Volume14,899,209
30 Day Avg. Volume13,229,067
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue12.57
Enterprise Value/Gross Profit18.24
Enterprise Value/Ebitda18.89
Forecast
1Y Price Target
$3.46Price Target Upside29.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
CapitaLand Ascendas REIT Business Overview & Revenue Model
Company DescriptionAscendas Real Estate Investment Trust (Ascendas Reit) is Singapore's first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. As at 31 December 2020, Ascendas Reit's investment properties under management stood at S$13.7 billion. The portfolio comprises 200 properties across the developed markets of Singapore, Australia, the United Kingdom and the United States. Ascendas Reit's portfolio includes business and science parks, suburban office properties, high-specifications industrial properties, light industrial properties, logistics and distribution centres, and integrated developments, amenities and retail properties. These properties house a tenant base of more than 1,450 international and local companies from a wide range of industries and activities, including research and development, life sciences, information technology, engineering, light manufacturing, logistics service providers, electronics, telecommunications, manufacturing services and back-room office support in service industries. Major tenants include Singtel, Stripe, DSO National Laboratories, Pinterest, DBS, CareFusion, Wesfarmers, Citibank and JPMorgan. Ascendas Reit is listed in several indices. These include the FTSE Straits Times Index, the Morgan Stanley Capital International, Inc (MSCI) Index, the European Public Real Estate Association/National Association of Real Estate Investment Trusts (EPRA/NAREIT) Global Real Estate Index and Global Property Research (GPR) Asia 250. Ascendas Reit has an issuer rating of A3' by Moody's Investors Service. Ascendas Reit is managed by Ascendas Funds Management (S) Limited, a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia's largest diversified real estate groups.
How the Company Makes MoneyCapitaLand Ascendas REIT generates revenue primarily through leasing space in its portfolio of properties to tenants across different sectors. Its key revenue streams include rental income from long-term lease agreements, which provide a stable and recurring income. The REIT also benefits from property value appreciation and strategic acquisitions that enhance its asset base and income potential. Additionally, Ascendas REIT may engage in property divestments and capital recycling to optimize its portfolio and achieve better returns for its investors. Strategic partnerships with key industry players and a diversified tenant base help mitigate risks and contribute to steady earnings.
CapitaLand Ascendas REIT Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: -1.80%|
Next Earnings Date:Oct 24, 2025
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 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
Negative
2.68
Price Trends
2.71
Negative
2.63
Positive
2.55
Positive
Market Momentum
>-0.01
Positive
43.78
Neutral
26.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A17U, the sentiment is Negative. The current price of 2.68 is below the 20-day moving average (MA) of 2.74, below the 50-day MA of 2.71, and above the 200-day MA of 2.55, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:A17U.
CapitaLand Ascendas REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $12.44B | 16.92 | 6.96% | 5.66% | 2.35% | 365.31% | |
63 Neutral | $6.93B | 13.52 | -0.57% | 7.16% | 3.62% | -22.63% | |
| ― | $2.59B | 15.19 | 5.16% | 6.86% | ― | ― | |
| ― | $1.71B | ― | -4.88% | 7.85% | ― | ― | |
| ― | $4.55B | 35.42 | 2.72% | 7.06% | ― | ― | |
| ― | $4.46B | 17.54 | 6.88% | 6.43% | ― | ― | |
| ― | $2.62B | 26.93 | 3.21% | 6.55% | ― | ― |
* Real Estate Sector Average
Performance Comparison
SG:A17U
CapitaLand Ascendas REIT
2.68
<0.01
0.04%
ATTRF
Ascott Residence
0.68
0.04
6.25%
CGIUF
ESR-REIT
2.10
0.19
9.95%
MAPGF
Mapletree Logistics
0.97
0.00
0.00%
MAPIF
Mapletree Industrial
1.58
-0.06
-3.66%
FRLOF
Frasers Logistics & Commercial Trust
0.72
-0.04
-5.26%
CapitaLand Ascendas REIT Corporate Events
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.
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 Updates Euro Medium Term Securities Programme
Jul 25, 2025
CapitaLand Ascendas REIT has updated its S$7 billion Euro Medium Term Securities Programme, initially established in 2020. The update includes changes to entity names, benchmark interest rates, and selling restrictions. Oversea-Chinese Banking Corporation Limited continues as the sole arranger and dealer. This update allows the issuance of notes or perpetual securities in various currencies, offering flexibility in financing and potentially enhancing the REIT’s market position.
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 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.
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.