CapitaLand Ascendas REIT (A17U) H2 2025 earnings summary

Executive summary

• Distributable income for FY2025 rose 1.4% year-on-year to SGD 678.3 million, while DPU declined 1.3% to 15.005 cents due to a larger unit base from equity fundraising and fee payments in units.

• Gross revenue increased 1% year-on-year to SGD 1.54 billion, and net property income (NPI) rose 1.7% to SGD 1,067.6 million, driven by accretive acquisitions and prudent expense management.

• Portfolio value reached SGD 18.2 billion, up 8.6% year-on-year, with 222 investment properties and a diversified tenant base across Singapore, US, Australia, and UK/Europe.

• Portfolio occupancy stood at 90.9% at year-end, with a third consecutive year of double-digit rental reversions (12%).

• Significant acquisition and divestment activity: SGD 1.5 billion in acquisitions and SGD 506.5 million in divestments at a premium to valuation.

Financial highlights

• NPI for 2H 2025 increased 4.3% year-on-year to SGD 544.1 million; distributable income for 2H 2025 rose 2.7% to SGD 347.2 million.

• DPU for the year was SGD 0.15005, slightly lower due to a larger unit base after equity fundraising.

• Portfolio rental reversion for FY2025 was +12.0%, with strong reversion in Australia (+41.0%) and the US (+12.3%).

• Aggregate leverage stood at 39.0% as of 31 Dec 2025, with SGD 4.2 billion debt headroom to the 50% MAS limit.

• Weighted average all-in debt cost was 3.5%, and interest coverage ratio was 3.6x; 75% of debt is fixed-rate.

Outlook and guidance

• Rental reversion guidance for 2026 is in the mid-single digit range, with Singapore and Australia expected to remain strong.

• CapEx for 2026 expected at SGD 700 million, with SGD 200–230 million of value to be turned on from ongoing projects.

• Divestment target for 2026 is SGD 300–500 million to fund new acquisitions.

• Interest cost expected to remain around 3.5% in 2026.

• Global economic growth is projected to remain steady at 3.3% in 2026, but uncertainties from tariffs and geopolitical tensions persist.