Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — FY2024 Earnings Presentation
67 slides from Capitaland Ascendas Reit's earnings presentation, Feb 6, 2025
Slide 1: FY 2024 Financial Results
CapitaLand Ascendas REIT FY 2024 Financial Results 6 February 2025 Aperia, Singapore
Slide 2: Agenda
Agenda 04 Key Highlights 07 Financial Performance 12 Investment Management 19 Capital Management 27 Asset Management 44 Market Outlook 51 Portfolio Resilience & Sustainability 60 Appendix: - Singapore Occupancy The Shugart, Singapore (CLAR vs Industrial Average) - Average Market Rents - Singapore In
Slide 3: Disclaimers
Disclaimers • This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors i
Slide 4: Key Highlights
FY 2024 Financial Results 500 Green Road, Brisbane, Australia Key Highlights
Slide 5: Key Highlights
Key Highlights FY 2024 Asset Healthy Portfolio Occupancy Distributable Income1 Management 92.8% 31 Dec 2023: 94.2% S$668.8 million +2.2% YoY Financial Positive Portfolio Rental Reversion2 Performance Distribution per Unit +11.6% 15.205 cents +0.3% YoY Healthy Aggregate Leverage Capital 37.7% Investm
Slide 6: Key Highlights
Key Highlights FY 2024 FTSE4Good Developed Index* Singapore Governance and FTSE4Good ASEAN 5 Index* Transparency Index 2024 Included since Dec 2024 Ranked 3rd in REITs and Business Trusts category Sustainability Real Estate Assessment 2024 Maintained ‘4-star’ rating since 2023 MSCI ESG Ratings** Mai
Slide 7: Financial Performance
FY 2024 Financial Results Financial Performance Croydon, London, United Kingdom
Slide 8: Financial Performance: FY 2024 vs FY 2023
Financial Performance FY 2024 vs FY 2023 (S$’m) FY 2024 FY 2023 Variance Mainly attributable to full year contribution from: • Acquisitions of 1 Buroh Lane (Singapore), The Shugart (Singapore), and The Chess Building (UK) in 2023; • Completion of development of MQX4 (Australia) and the convert-to-su
Slide 9: Financial Performance: 2H 2024 vs 1H 2024
Financial Performance 2H 2024 vs 1H 2024 (S$’m) 2H 2024 1H 2024 Variance Mainly attributable to: • Divestment of 77 Logistics Place, 62 Sandstone Place and 92 Sandstone Place (Australia) Gross revenue 753.0 770.1 -2.2% in Feb 2024; • Divestment of 21 Jalan Buroh (Singapore) in Nov 2024; • Lower util
Slide 10: Financial Performance: 2H 2024 vs 2H 2023
Financial Performance 2H 2024 vs 2H 2023 (S$’m) 2H 2024 2H 2023 Variance Mainly attributable to: • Divestment of 77 Logistics Place, 62 Sandstone Place and 92 Sandstone Place (Australia) in Feb 2024; • Divestment of a logistics property in Singapore (21 Jalan Buroh) in Nov 2024; • Decommission of We
Slide 11: Distribution Details
Distribution Details Distribution Period DPU (Singapore cents) 1 1 July 2024 to 31 December 2024 7.6811 Distribution timetable Last day of trading on “cum” basis 12 February 2025 (Wednesday) Ex-distribution date 13 February 2025 (Thursday), 9.00 am Record date 14 February 2025 (Friday), 5.00 pm Dist
Slide 12: Investment Management
FY 2024 Financial Results Investment Management 510 Townsend Street, San Francisco, United States
Slide 13: FY 2024 Investment Highlights
FY 2024 Investment Highlights o Announced the development of a best-in-class, green-certified logistics distribution property in Charleston and CLAR’s first sale and leaseback acquisition of a modern Class A logistics property in Indianapolis amounting to S$248.2 million o Properties are strategical
Slide 14: Strategically Well-positioned US Logistics Portfolio
Strategically Well-positioned US Logistics Portfolio New US logistics investments in 2024 Chicago Indianapolis Summerville Logistics Center1 DHL Indianapolis Logistics Center Kansas City Charleston, US Indianapolis, US US Logistics Properties Increase by two 20 across 4 cities Charleston AUM2 GFA2 I
Slide 15: Acquisition under Development
Acquisition under Development Summerville Logistics Center, Charleston, South Carolina, US Total Investment Cost1, 2 S$94.8 million / US$70.5 million Vendor Summerville Logistics Center Owner (SC), LLC PTLI Summerville Member, LLC (Affiliate of Portman Industrial LLC which is Developer an experience
Slide 16: Acquisition
Acquisition DHL Indianapolis Logistics Center, Indianapolis, Indiana, US S$150.3 million / US$115.8 million Purchase Consideration1, 2 (4.1% discount to independent market valuation) Acquisition Fee3 and S$3.2 million / US$2.5 million Other Transaction Costs Total Acquisition Cost1 S$153.4 million /
Slide 17: FY 2024 Investment Highlights
FY 2024 Investment Highlights o Completed two asset enhancement initiatives totaling S$3.9 million to improve portfolio quality Country Segment Total Cost (S$ million) Completion Date Completed Asset Enhancement Initiatives Pacific Tech Centre Singapore Industrial & Data Centres 2.4 Jul 2024 ONE@Cha
Slide 18: Divestment (Completed on 28 Nov 2024)
Divestment (Completed on 28 Nov 2024) 21 Jalan Buroh, Singapore o Sale price is at a 93.2% premium to original purchase price and 67.1% premium to recent valuation A three-storey ramp-up warehouse with a seven- Description storey ancillary office block, rooftop carpark and a container yard Sale Pric
Slide 19: Capital Management
FY 2024 Financial Results Capital Management Reynolds House, Manchester, United Kingdom
Slide 20: Healthy Balance Sheet
Healthy Balance Sheet ▪ Aggregate leverage is healthy at 37.7%1, 2 ▪ Available debt headroom of ~S$4.4 billion to reach MAS’s aggregate leverage limit of 50.0% As at As at As at 31 Dec 2024 30 Jun 2024 31 Dec 2023 Total Debt (S$ million)1, 2, 3 6,708 6,726 6,724 Total Assets (S$ million)1, 2 17,806
Slide 21: Well-spread Debt Maturity Profile
Well-spread Debt Maturity Profile ▪ Well-spread debt maturity with about 13% - 14% of total borrowings maturing in each of the next three years ▪ Average debt maturity healthy at 3.5 years (Jun 2024: 3.7 years) ▪ Green financing totalling S$2.7 billion1, accounts for about 39% of total borrowings1 2
Slide 22: Key Funding Indicators
Key Funding Indicators ▪ Robust financial metrics that exceed bank loan covenants by a healthy margin ▪ A3 credit rating facilitates good access to wider funding options at competitive rates As at As at As at 31 Dec 2024 30 Jun 2024 31 Dec 2023 Aggregate Leverage1, 2 37.7% 37.8% 37.9% Unencumbered P
Slide 23: Prudent Interest Rate Risk Management
Prudent Interest Rate Risk Management Proportion of Borrowings on Fixed Rates Refinancing in FY2025 ▪ ~83% of borrowings are on fixed rates with an average term of 3.7 years ▪ S$835 million2 of borrowings are due to be refinanced in FY 2025 ▪ A 50 bps increase in interest rate on variable rate debt
Slide 24: High Natural Hedge
High Natural Hedge ▪ Maintained high level of natural hedge of ~76% for overseas investments to minimise the effects of any adverse exchange rate fluctuations AUD $ USD $ GBP £ EUR € 70% 72% 80% 100% 2.5 A$ 2.5 b (S$ 2.2 b) US$ 1.4 b 2.0 (S$ 1.9 b) S$ billion A$ 1.7 b (S$ 1.5 b) US$ 1.1 b 1.5 £ 0.7
Slide 25: Annual Property Revaluation
Annual Property Revaluation ▪ Stable portfolio revaluation. Total valuation of 225 investment properties1 was S$16.8 billion as at 31 Dec 2024 ▪ Same-store valuation2 was S$16.76 billion as at 31 Dec 2024 (31 Dec 2023: S$16.75 billion). ▪ By geography, stable portfolio valuation was mainly due to an
Slide 26: Stable Revaluation by Segment
Stable Revaluation by Segment Total valuation of Business Space & Life Sciences properties was S$7.70 billion as at 31 Dec 2024. The stable valuation was due to: ▪ An uplift for Singapore (+S$146.8 million, +2.8%) ▪ Partially offset by the US (-S$117.6 million, -6.9%) and Australia (-S$57.3 million,
Slide 27: Asset Management
FY 2024 Financial Results Asset MQX4, Sydney, Australia Management
Slide 28: Overview of Portfolio Occupancy
Overview of Portfolio Occupancy +0.5% QoQ +1.8% QoQ +0.8% QoQ 0.0% QoQ +0.7% QoQ 98.7% 99.3% 99.3% 99.3% 92.5% 92.0% 92.7% 88.9% 87.1% 90.4% 92.5% 91.7% 92.8% 92.1% 94.2% Singapore United States Australia United Kingdom / Europe Total Portfolio Dec-24 Sep-24 Dec-23 Gross Floor 3,148,830 692,1852 822
Slide 29: Singapore Occupancy
Singapore Occupancy ▪ Occupancy improved to 92.5% mainly due to new take ups at o ONE@Changi City, a business space property (31 Dec 2024: 99.5% vs 30 Sep 2024: 81.5%) o Xilin Districentre D, a logistics property (31 Dec 2024: 96.1% vs 30 Sep 2024: 62.3%) o The Alpha, a business space property (31 D
Slide 30: United States Occupancy
United States Occupancy ▪ Occupancy improved to 88.9% mainly due to o Lackman Business Centre 4, a logistics property (Kansas City) (31 Dec 2024: 100% vs 30 Sep 2024: 0%) o Lackman Business Centre 1-3, a logistics property (Kansas City) (31 Dec 2024: 100% vs 30 Sep 2024: 82.0%) As at 31 Dec 2024 30
Slide 31: Australia Occupancy
Australia Occupancy ▪ Occupancy improved to 92.5% mainly due to o 484 Great Western Highway, a logistics property (Sydney) (31 Dec 2024: 100% vs 30 Sep 2024: 54.8%) As at 31 Dec 2024 30 Sep 2024 31 Dec 2023 Total Australian Portfolio GFA (sqm) 822,6351 822,4881 859,372 Australian Portfolio Occupancy
Slide 32: United Kingdom/Europe Occupancy
United Kingdom/Europe Occupancy ▪ Occupancy remained high at 99.3% As at 31 Dec 2024 30 Sep 2024 31 Dec 2023 Total UK/Europe Portfolio GFA (sqm) 588,3051 588,3051 599,705 UK/Europe Portfolio Occupancy (same-store)1, 2 99.3% 99.3% 99.3% Occupancy of Investments Completed in the N.A N.A 79.1%3 last 12
Slide 33: Sources of New Demand in 4Q 2024
Sources of New Demand in 4Q 2024 By Gross Rental Income Singapore Engineering, 48.9% Electronics, 13.0% Distributors & Trading Company, 11.1% Education and Media, 9.8% IT & Data Centers, 7.4% Lifestyle, Retail and Consumer Products, 3.4% Biomedical and Agri/Aquaculture, 3.2% Financial & Professional
Slide 34: Sources of New Demand in FY 2024
Sources of New Demand in FY 2024 By Gross Rental Income Singapore Engineering, 32.3% Government and IO/NGOs/NPOs, 10.7% IT & Data Centers, 10.4% Distributors & Trading Company, 9.1% Biomedical and Agri/Aquaculture, 8.7% Electronics, 8.6% Lifestyle, Retail and Consumer Products, 7.2% Education and Me
Slide 35: Portfolio Rental Reversions
Portfolio Rental Reversions ▪ Average portfolio rent reversion of 11.6% was recorded for leases renewed in FY 2024 ▪ Rental reversion for FY 2025 is expected to be in the positive mid-single digit range % Change in Renewal Rates for Multi-tenant Buildings1 FY 2024 FY 2023 4Q 2024 3Q 2024 Singapore 1
Slide 36: Weighted Average Lease Expiry
Weighted Average Lease Expiry By Gross Revenue ▪ Portfolio Weighted Average Lease Expiry (WALE) remained stable at 3.7 years WALE (as at 31 Dec 2024) Years Singapore 3.4 United States 4.2 Australia 3.0 United Kingdom/Europe 6.2 Portfolio 3.7 CapitaLand Ascendas REIT FY 2024 Financial Results 36
Slide 37: Portfolio Lease Expiry Profile
Breakdown of expiring leases for Portfolio Lease Expiry Profile FY 2025 and FY 2026 As at 31 Dec 2024 Logistics o Portfolio WALE of 3.7 years 21.4% Business o Lease expiry is well-spread, extending beyond FY 2028 Space & Life Sciences o Weighted average lease term of new leases1 signed in FY 2024 wa
Slide 38: Singapore: Lease Expiry Profile
Breakdown of expiring leases for Singapore: Lease Expiry Profile FY 2025 and FY 2026 As at 31 Dec 2024 Logistics 15.3% Business o Singapore portfolio WALE of 3.4 years Space & Life Sciences o Lease expiry is well-spread, extending beyond FY 2028 37.0% FY 2025 o 19.5% of Singapore’s gross rental inco
Slide 39: United States: Lease Expiry Profile
Breakdown of expiring leases for FY 2025 and FY 2026 United States: Lease Expiry Profile As at 31 Dec 2024 Logistics 27.0% Portland o United States portfolio WALE of 4.2 years Kansas City 8.1% 27.0% o Lease expiry is well-spread, extending beyond FY 2028 FY 2025 San Diego o 9.6% of United States’ gr
Slide 40: Australia: Lease Expiry Profile
Breakdown of expiring leases for FY 2025 and FY 2026 Australia: Lease Expiry Profile As at 31 Dec 2024 Business Space 50.9% Brisbane o Australia portfolio WALE of 3.0 years 46.9% o Lease expiry is well-spread, extending beyond FY 2028 Melbourne FY 2025 32.6% o 22.7% of Australia’s gross rental incom
Slide 41: United Kingdom/Europe: Lease Expiry Profile
Breakdown of expiring leases for United Kingdom/Europe: Lease Expiry Profile FY 2025 and FY 2026 As at 31 Dec 2024 Data Centre 13.2% o United Kingdom/Europe portfolio WALE of 6.2 years o Lease expiry is well-spread, extending beyond FY 2028 FY 2025 o 3.9% of United Kingdom/Europe’s gross rental inco
Slide 42: Improving Portfolio Quality
Improving Portfolio Quality Ongoing Projects ▪ There are eight projects worth S$803.6 million that are undergoing development, redevelopment and refurbishment to improve returns of the existing portfolio Estimated Total Cost Estimated City / Country Segment (S$ million) Completion Date Acquisition u
Slide 43: Redevelopment (New)
Redevelopment (New) Logis Hub @ Clementi1, Singapore The transformation of an existing cargo lift warehouse into a modern seven-storey ramp-up logistics property. Notable features include 106 loading bays, power provision for cold storage and large contiguous floor plates with ceiling height of up t
Slide 44: Market Outlook
FY 2024 Financial Results Market Outlook Grab Headquarters, Singapore
Slide 45: Market Outlook: Macro Environment
Market Outlook Macro Environment Global Economic Growth According to the International Monetary Fund (IMF), • Global growth was 3.2% in 2024 and is projected at 3.3% in both 2025 and 2026 • The stable albeit lacklustre outlook reflects divergent growth paths across various economies amid elevated tr
Slide 46: Market Outlook: Singapore
Market Outlook Singapore (SG) Economic Growth CLAR SG Portfolio (S$11.0B as at 31 Dec 2024) • In 2024, the economy grew by 4.0%, faster than the • Holds a strong presence in Singapore comprising 1.1% growth in 2023 Business Space & Life Sciences, Industrial & Data • The MTI expects the Singapore eco
Slide 47: Market Outlook: United States
Market Outlook United States (US) Economic Growth CLAR US Portfolio (S$1.9B as at 31 Dec 2024) • In 4Q 2024, the US economy grew at an annual rate of • Portfolio comprises Business Space & Life Sciences 2.3% on higher consumer and government spending, and Logistics properties partly offset by a decr
Slide 48: Market Outlook: Australia
Market Outlook Australia (AU) Economic Growth CLAR AU Portfolio (S$2.2B as at 31 Dec 2024) • In 3Q 2024, the Australia economy grew 0.3% driven • Portfolio comprises Business Space and Logistics by public sector expenditure properties • The IMF estimated that GDP growth would be 1.2% in • Healthy oc
Slide 49: Market Outlook: United Kingdom and Europe
Market Outlook United Kingdom (UK) and Europe (EU) UK Economic Growth, Inflation & Interest Rates EU Economic Growth, Inflation & Interest Rates • In 3Q 2024, the economy grew by 0.9% YoY. The IMF • In 3Q 2024, the economy grew by 0.9% YoY. The estimated growth at 0.9% in 2024, following a 0.3% Euro
Slide 50: Market Outlook: Summary
Market Outlook Summary Global Environment CLAR Portfolio (S$16.8B as at 31 Dec 2024) • Uncertainties surrounding global trade policies, • Stability of CLAR’s performance is underpinned by its inflation trends and monetary policies remain the key well-balanced, resilient portfolio in developed market
Slide 51: Portfolio Resilience & Sustainability
FY 2024 Financial Results Portfolio Resilience & Sustainability FM Global Centre, Singapore
Slide 52: Diversified Portfolio Across Developed Markets
Diversified Portfolio Across Developed Markets Investment Properties stood at S$16.8 billion1 66% Singapore as at 31 Dec 2024 o Singapore: S$11.0 billion 11% United States o United States: S$1.9 billion Asset Value o Australia: S$2.2 billion S$16.8 b1 13% Australia o United Kingdom/Europe: S$1.6 bil
Slide 53: Multi-Asset Portfolio
Multi-Asset Portfolio Steering Towards Growth Sectors Steering our portfolio towards asset classes that cater 46%, Business Space and Life Sciences to the changing market and tenant requirements arising Business Space from structural trends and changing consumption 38% patterns such as digitalisatio
Slide 54: A Diverse Mix of Tenants' Business Industries
A Diverse Mix of Tenants’ Business Industries Engineering 11.8% Logistics & Supply Chain Management 11.8% 65.1% customer base Biomedical Sciences 10.3% Technology, Logistics and Data centres 10.2% Life sciences industries Information & Communications Technology 8.8% Electronics 8.6% Financial Servic
Slide 55: Quality and Diversified Customer Base
Quality and Diversified Customer Base ▪ Total customer base of approximately 1,790 tenants ▪ Top 10 customers (as at 31 Dec 2024) account for about 16.2% of monthly portfolio gross revenue ▪ On a portfolio basis, weighted average security deposit is about 6.1 months of rental income Top 10 Customers
Slide 56: Diversified Portfolio
Galaxis, 4.0% The Chess Building, 3.5% Diversified Portfolio Aperia, 3.4% 510 Townsend Street, 2.5% ONE@Changi City, 2.4% 12, 14 & 16 Science Park Drive, 2.3% Nucleos, 2.2% Pioneer Hub, 2.1% Neuros & Immunos, 1.9% 40 Penjuru Lane, 1.8% Croydon, 1.7% 1, 3 & 5 Changi Business Park Crescent, 1.6% Telep
Slide 57: Sustainability Management Structure
Sustainability Management Structure Fostering sustainability growth with robust, resilient, and stakeholder-driven management structures Provide strategic CLI Board of Directors oversight of ESG The Manager’s Sustainability Committee (SC) policies and integration (Established in 2020) Executive and
Slide 58: CapitaLand Ascendas REIT's ESG Targets
CapitaLand Ascendas REIT’s ESG Targets Achieving excellence with ESG targets that drive impactful and sustainable change ENVIRONMENTAL SOCIAL GOVERNANCE • New acquisitions / developments1 to • Zero incidents resulting in staff • Zero lapses in corporate governance / meet a targeted green certificati
Slide 59: Continued Momentum for Green Initiatives
Continued Momentum for Green Initiatives CLAR continues to push boundaries in our environmental efforts, embodying our commitment as a responsible real estate player GREEN PROPERTIES GREEN FINANCING 49% Green-certified properties (by GFA)1 >2.6b Green financing³ S$1,823m S$2,057m S$2,653m Demonstrat
Slide 60: Appendix
FY 2024 Financial Results Appendix 540-570 Congress Circle South, Chicago, United States
Slide 61: Singapore Occupancy: CLAR vs Industrial Average
Singapore Occupancy CLAR vs Industrial Average 100% 98.0% 94.4% 91.0% 91.5% 84.8% 80% 77.9% Occupancy Rate 60% 40% 20% 0% Business Space & Life Sciences Industrial & Data Centres Logistics CLAR JTC Statistics Source : CLAR's Singapore portfolio as at 31 Dec 2024. Market: 4Q 2024 JTC statistics. The
Slide 62: Average Market Rents (Singapore)
Average Market Rents (Singapore) By Segment 120.00 Rental Index of All Singapore Industrial Property Rental Index (Base Year: 4Q2012) 100.00 80.00 60.00 40.00 20.00 0.00 0 0 0 0 0 0 0 0 0 0 0 $6.5 $6.0 Average Gross Rents ($ psf per month) $5.5 Business Park (City Fringe): $6.05 psfpm $5.0 $4.5 Rent
Slide 63: Singapore Industrial Market: New Supply
Singapore Industrial Market New Supply ▪ Potential new supply of 3.65 m sqm* (6.9% of existing stock) over next 4 years, of which ~75% are pre-committed ▪ Island-wide occupancy as at 30 Sep 2024 remained at 89.0% compared to the previous quarter New Existing Supply % of New/ Sector ('000 sqm) 2024 2
Slide 64: Singapore Business & Science Park New Supply
Singapore Business & Science Park New Supply (1) Expected % Pre-committed Proposed Project Developer Location GFA (sqm) Completion (Estimated) 2024 / 2025 Punggol Digital District (Phase 1 & 2) JTC Punggol Way 199,130 65% Science Park 2025 Geneo SPRINT Plot 1 TM Pte Ltd 112,330 0% Drive 27 Internati
Slide 65: Singapore Industrial & Data Centres New Supply
Singapore Industrial & Data Centres New Supply (1) Expected % Pre-committed Proposed Project Developer Location GFA (sqm) Completion (Estimated) 2025 Bulim Square JTC Bulim Lane 1/2 157,590 13% 2025 JTC@Ang Mo Kio JTC Ang Mo Kio Street 65 117,230 0% 2026 Stellar@Tampines Soon Hock Property Developme
Slide 66: Singapore Logistics New Supply
Singapore Logistics New Supply (1) Expected % Pre-committed Proposed Project Developer Location GFA (sqm) Completion (Estimated) 2024 Warehouse development Schenker Singapore Pte Ltd Greenwich Drive 61,310 100% 2025 Warehouse development Mapletree Logistics Trust Benoi Road 82,380 0% Single-user ind
Slide 67: Thank you
Thank you Galaxis, Singapore
CapitaLand Ascendas REIT — FY2024 Earnings Presentation on 6ix