CapitaLand Ascendas REIT’s Revenue Up 10.3% In 2022

Office Finder Team

February 3, 2023

Singapore

SINGAPORE – CapitaLand Ascendas REIT revealed that its gross revenue rose by 10.3 percent year-on-year to S$1.35 billion in FY2022, according to Singapore Exchange (SGX) filings published on Thursday evening (2 February, SGT).

The increase is primarily attributable to the completion of Grab’s headquarters in Singapore in July 2021, as well as the purchase of the remaining 75 percent stake in AF5PL, which owns the Galaxis business park in Singapore, in June 2021. This is in addition to the better performance of certain assets in the city-state.

Other main reasons are the acquisition of 11 data centres in Europe in March 2021 and the purchase of 11 logistics properties in Kansas City, US in November 2021.

The revenue growth was also driven by the completion of Ubix in Singapore in January 2022, 500 Green Road in Brisbane and 7 Kiora Crescent in Sydney, Australia in February 2022, and the acquisition of seven logistics properties in Chicago, US in June 2022.

However, the revenue increase was partially offset by a loss of income arising from the sale of 1314 Ferntree Gully Road in Melbourne in June 2021, and 82 Noosa Street and 62 Stradbroke Street, in Brisbane, Australia in July 2021.

Thanks to the aforementioned factors, CapitaLand Ascendas REIT’s net property income (NPI) climbed by 5.2 percent to S$968.8 million on an annual basis. However, the NPI growth was partially offset by the higher power expenses in Singapore.

Aside from that, the real estate investment trust (REIT) disclosed that its portfolio occupancy improved to 94.6 percent at the end of FY2022 compared to 93.2 percent at the end of December 2021.

CapitaLand Ascendas REIT also recorded a positive portfolio rental reversion of 8 percent during the period under review. However, its same-store real estate valuation dipped by 1.1 percent year-on-year to S$16.11 billion at the end of December 2022.

“We achieved strong results across all our asset classes despite the uncertain macroeconomic conditions. Our portfolio occupancy hit a 10-year high of 94.6 percent… Together with our proactive and disciplined approach to capital management, DPU rose by 3.5 percent to 15.798 cents in FY2022,” added William Tay, CEO of CapitaLand Ascendas REIT’s manager.