The REIT saw its portfolio occupancy in Australia drop 5.1% q-o-q, while Singapore and UK/Europe saw no change for the period.

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. 

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. 

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.