CapitaLand Ascendas REIT (CLAR) has reported a 92.1% portfolio occupancy for the 3QFY2024 ended September, down from the 94.5% in the same period a year ago.
The REIT experienced the highest q-o-q drop in portfolio occupancy in its Australia market, at 5.1% for the 3QFY2024. It’s Singapore and UK/Europe operations saw no changes.
The average portfolio rent reversion of leases renewed in 3QFY2024 was 14.4%, and the manager says that it expects the rental reversion for FY2024 to be in the positive high-single digit range.
The REIT’s weighted average lease expiry (WALE) remained stable at 3.7 years.
Year to date, the REIT’s weighted average all-in debt cost remained at 3.7%. Its aggregate leverage for the 3QFY2024 remained at 38.9%.
CLAR’s interest cover ratio came in at 3.5 times for the period, and its net debt per annualised ebitda came in at 7.8 times.
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CLAR’s average debt maturity for the 3QFY2024 came in at 3.3 years, with its longest debt maturing in FY2034.
The REIT has about 80% of its borrowings on fixed rates with an average term of 3.6 years, and about $370 million of its borrowings are due to be refinanced in FY2024.
The manager says that a 50 basis points increase in interest rate on refinancing is expected to have a pro forma impact of $1.9 million decline in distribution or 0.04 cents decline in distribution per unit.
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For the quarter, the REIT completed two asset enhancement initiatives in Singapore totalling $3.9 million. These projects were Pacific Tech Centre and One@Changi City, which cost $2.4 million and $1.5 million respectively. The Pacific Tech Centre is an industrial building, while the ONE@Changi City is a business space property.
The REIT expects to complete the divestment of 21 Jalan Buroh in Singapore for $112.8 million in 4Q2024.
Units in CapitaLand Ascendas REIT A17U closed flat at $2.75 on Oct 25.
