CapitaLand Ascendas REIT Closes Oversized Private Placement; Shares Drop 3%

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CAPITALAND ($SGX:A17U): CapitaLand Ascendas REIT has recently completed its upsized private placement, raising a total of 183352000 units at SG$2.727 each, as revealed in a Wednesday filing. The new units were subscribed by institutional and other accredited investors. Despite this successful placement, the REIT’s shares have still dropped by 3%, indicating that investors are not fully confident in the REIT’s long-term prospects.

CapitaLand Ascendas REIT is a Singapore-based real estate investment trust (REIT) that has a diversified portfolio of office, retail, and industrial properties in the Asia-Pacific region. The REIT provides investors with a regular income from its rental income and long-term capital appreciation.

Analysis

At GoodWhale, we recently conducted an analysis of CAPITALAND ASCENDAS REIT and our findings concluded that this security is a “cow” – a type of company we identify as having a track record of paying out consistent and sustainable dividends. This type of company may be particularly attractive to investors seeking reliable income with less direct involvement such as retirees or those looking for a reliable stream of passive income. We are also pleased to note that CAPITALAND ASCENDAS REIT has a high health score of 9/10 in regards to its cashflows and debt, meaning it is capable to safely ride out any crisis without the risk of bankruptcy. In terms of the overall security of CAPITALAND ASCENDAS REIT, the Star Chart reveals it to be strong in terms of asset, dividend, and profitability while being medium in growth. This indicates a company with solid fundamentals that have been performing well over the years. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for A17U. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for A17U. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for A17U. More…

Key Ratios Snapshot

Some of the financial key ratios for A17U are shown below. More…

Peers

CapitaLand Ascendas REIT is one of the leading industrial real estate investment trusts (REITs) in Asia, with a portfolio of 176 industrial properties across 10 countries. The REIT is listed on the Singapore Stock Exchange and is a component of the Straits Times Index. CapitaLand Ascendas REIT’s competitors include Mapletree Industrial Trust, ESR LOGOS REIT, and BWP Trust.

– Mapletree Industrial Trust ($SGX:ME8U)

Mapletree Industrial Trust is a Singapore-based real estate investment trust (REIT) that focuses on industrial properties in Singapore, Hong Kong, and China. As of December 31, 2020, the trust owned 59 properties with a total gross floor area of approximately 23.7 million square feet.

– ESR LOGOS REIT ($SGX:J91U)

ESR Logos REIT is a Japanese real estate investment trust that focuses on logistics properties. As of March 31, 2022, the company had a market capitalization of 2.35 billion yen.

– BWP Trust ($ASX:BWP)

BWP Trust is a real estate investment trust that owns, operates, and develops a portfolio of retail, office, industrial, and residential properties in the United States. As of December 31, 2020, the company owned and operated 1,285 properties comprising approximately 167 million square feet of gross leasable area. BWP Trust is headquartered in Boston, Massachusetts.

Summary

According to analysts, this private placement was oversubscribed and was upsized due to strong investor demand. Despite the positive news, shares of CapitaLand Ascendas REIT have dropped 3% in response to the placement. Investors should pay close attention to the performance of CapitaLand Ascendas REIT’s portfolio of properties, which has displayed resilience in the face of changing economic and market conditions. With a strong track record of delivering consistent returns, CapitaLand Ascendas REIT is a compelling investment for investors seeking a steady stream of income.