REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance


Sunday, February 11, 2024

CapitaLand Ascott Trust's 2H FY23 Result Review

Basic Profile & Key Statistics

Key Indicators


Performance Highlight
Revenue and gross profit improved YoY mainly due to higher revenue from existing properties and contributions from new properties. Distribution and DPS improved YoY mainly due to a higher amount of realized exchange gain. Without this one-off gain for both periods, the DPS is the same YoY.

Revenue per Available Unit
The RevPAU in 4Q has reached 103% of pre-COVID level.

Acquisition

The acquisition of 3 properties in London, Dublin and Jakarta was completed in Nov 2023, while the acquisition of rental housing in Japan was completed in Jan 2024.

Divestment

The divestment of 4 properties in France was completed in Sep 2023. The divestment of 3 properties in Japan is targeted to be completed by 1Q 2024. As for the divestment of 2 properties in Australia, 1 was completed on 31 Jan while another is targeted to be completed in 3Q 2024. On 2 Feb, CLAS announced for divestment of  Citadines Mount Sophia Singapore, which is targeted to be completed in 1Q 2024.

Development
The redevelopment of Somerset Liang Court Singapore is expected to be completed in 2H 2025.

Asset Enhancement Initiative

Riverside Hotel Robertson Quay has rebranded and undergoing renovation which is targeted to be completed by 1Q 2024. In addition, AEIs for multiple properties are ongoing where majority is expected to be completed by 2Q 2024.

Related Parties Shareholding

The REIT manager holds a relatively high number of shares, whereas the sponsor and directors of the REIT manager hold a relatively low number of shares.

Lease Profile

WALE is relatively long with a well-spread lease expiry.

Debt Profile

WADM is relatively long with well-spread debt maturity. While the cost of debt is low, the proportion of unsecured debt is also low. In contrast, the proportion of hybrid securities is relatively high.

Diversification Profile

The overall diversification profile is outstanding.

Key Financial Metrics

The operating distributable income margin is on the lower side.

DPU Breakdown
  • TTM Distributable Income Breakdown:
    • 89.6% from Operation
    • 10.4% from Management Fees Paid in Units

Trends


  • Uptrend: DPU from Operation, Property Yield, Operating Distributable Income Margin
  • Slight Uptrend: Adjusted Interest Coverage Ratio
  • Downtrend: NAV per Unit, Operating Distributable Income on Capital

Relative Valuation


  • Dividend Yield - Above +1SD for 1y, 3y & 5y
  • P/NAV - Below -1SD for 1y & 3y; Average for 5y

Author's Opinion

Performance has shown improvement compared to the previous half-year, driven by benefits from travel recovery. RevPAU has continued its upward trend in 2024. Regarding debt, the cost remains low and stable, with 18% maturing in 2024.


For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts


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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.

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