The manager of CapitaLand Ascendas REIT (CLAR) has reported portfolio occupancy of 94.5% for the 3QFY2022 ended September.
The average portfolio rent reversion of leases renewed in 3QFY2022 and year-to-date was 5.4% and 8% respectively.
Rental reversion for FY2022 is expected to be in the positive mid single-digit range, the manager adds in its business update.
The REIT’s weighted average lease expiry (WALE) by gross revenue stood at 3.9 years while weighted average lease term of new leases signed in 3QFY2022 was 5.4 years, having contributed 2.3% of the quarter’s total gross revenue.
CLAR’s aggregate leverage stood at 37.3%. About 78% of the borrowings are on fixed rates with an average term of 3.4 years.
The manager points out that a 50 basis points increase in interest rate is expected to have a pro forma impact of $7 million decline in distribution or 0.17 cents decline in DPU.
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The REIT maintained a high level of natural hedge of about 75% for overseas investment to minimise the effects of any adverse exchange rate fluctuations.
“The manager’s proactive portfolio management and prudent capital management will help to navigate and mitigate the rising utility and interest expenses. In this respect, we have implemented higher service charge for our Singapore leases from October 2022.
“The manager is confident that CLAR’s diversified and quality portfolio in developed markets should help it ride through this turbulent period,” it adds.
Units in CLAR closed 1 cent lower or 0.38% down on Oct 31 at $2.62.
