CapitaLand Ascendas Reit portfolio occupancy falls to 92.1% in Q3

The business space and industrial Reit’s aggregate leverage rises to 38.9%, from 37.8% in Q2

PORTFOLIO occupancy at CapitaLand Ascendas Reit (Clar) declined to 92.1 per cent in Q3, from 93.1 per cent in Q2.

Occupancy in the US fell to 87.1 per cent, mainly due to lower occupancy in Raleigh, while Australia slipped to 91.7 per cent, largely due to a lease expiry in Sydney, the manager said in a business update on Friday (Oct 25).

Nevertheless, occupancy in Singapore remained stable at 92 per cent, and remained high in the UK and Europe at 99.3 per cent.

Meanwhile, portfolio rental reversions rose to 14.4 per cent in the quarter, from 11.7 per cent in the previous quarter. The manager expects rental reversions for the full year of 2024 to be in the positive high single digit range.

The business space and industrial Reit’s aggregate leverage rose to 38.9 per cent, from 37.8 per cent in Q2, but the manager said the level “remains healthy”.

Its year-to-date weighted average all-in debt cost remained stable at 3.7 per cent, the manager noted.

Clar’s manager expects uncertainties surrounding the economic outlook, the pace and timing of monetary policy easing, as well as the intensity of ongoing geopolitical conflicts to continue posing challenges to its tenants’ businesses and its operating costs.

But it said Clar’s well-balanced, resilient portfolio and strong balance sheet makes it well-positioned to seize growth opportunities to deliver sustainable returns.

Units of Clar closed flat at S$2.75 on Friday, before the release of the business update.