Capitaland Ascendas Reit Sells Singapore Industrial Property for S$112.8 Million
October 22, 2024
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CAPITALAND ($SGX:A17U): CapitaLand Ascendas REIT is a leading real estate investment trust listed on the Singapore stock exchange. The company focuses on investing in and managing a diverse portfolio of properties in Singapore, Australia, and other countries in Asia. It is one of the largest REITs in Singapore and has a strong track record of delivering consistent and stable returns to its investors. In a recent announcement, CapitaLand Ascendas REIT revealed that it has successfully sold an industrial property located at 21 Jalan Buroh in Singapore for a total of S$112.8 million. This divestment is in line with the company’s strategy of active portfolio management, which involves periodically reviewing its asset portfolio and divesting properties that no longer fit its investment objectives. The property is currently fully occupied by a single tenant, a logistics company, under a long-term lease agreement.
CapitaLand Ascendas REIT’s decision to sell the property was driven by the attractive offer received from a third-party buyer. The divestment of the property at 21 Jalan Buroh also aligns with CapitaLand Ascendas REIT’s strategy to focus on high-quality assets with strong potential for rental income growth and value creation. The proceeds from the sale will be used to fund potential investments that meet the company’s investment criteria and contribute to its long-term growth plans. With a strong track record of successful divestments and prudent investment strategies, the company is well-positioned to continue delivering sustainable returns and creating long-term value for its investors.
Share Price
On Tuesday, the stock of Capitaland Ascendas Reit opened at SG$2.78 and closed at SG$2.77, showing a decrease of 0.36% from its previous closing price of 2.78. This slight decline in stock price may be attributed to the recent sale of a Singapore industrial property by the real estate investment trust (REIT). The buyer of the property is identified as TEE Land’s unit TEE Infrastructure Pte Ltd. This divestment is in line with the REIT’s strategy to actively manage its portfolio and optimize its returns for unitholders. It comprises of a seven-storey industrial building with eight factory units and ancillary office space. The sale of this property is also in line with the REIT’s strategy to focus on high-quality assets in key markets such as Singapore, Australia, and the United States.
It also provides the REIT with an opportunity to recycle its capital and potentially redeploy it into other properties or developments that align with its investment objectives. Overall, this divestment is a positive move for Capitaland Ascendas Reit and its unitholders. It allows the REIT to streamline its portfolio and potentially unlock value for its investors. As the REIT continues to pursue its growth strategy, investors can expect to see more developments and transactions in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for A17U. More…
| Total Revenues | Net Income | Net Margin |
| 1.48k | 169.48 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for A17U. More…
| Operations | Investing | Financing |
| 956.28 | -925.71 | -28.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for A17U. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.27k | 8.05k | 2.33 |
Key Ratios Snapshot
Some of the financial key ratios for A17U are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 62.2% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
After conducting a comprehensive analysis of CAPITALAND ASCENDAS REIT’s wellness, I have come to the conclusion that this company is in a strong position. To determine this, I used GoodWhale’s Star Chart, which evaluates a company’s performance in various categories. This means that the company has a solid portfolio of properties and assets, which indicates stability and potential for growth. Additionally, the company’s dividend performance is also strong, as it has consistently paid out dividends to its shareholders. This is a positive sign for investors looking for a steady stream of income. This indicates that the company is able to generate healthy profits from its operations, which can be reinvested for future growth or distributed as dividends to shareholders. Overall, based on the Star Chart analysis, I would classify CAPITALAND ASCENDAS REIT as a “cow” type of company. This means that it has a strong track record of paying out consistent and sustainable dividends. For investors looking for a stable and reliable source of income, this could be an attractive option. In terms of growth, CAPITALAND ASCENDAS REIT falls into the medium category. While it may not be the fastest-growing company in its industry, it still has potential for future growth due to its strong assets and profitability. Considering its financial health, CAPITALAND ASCENDAS REIT has a high score of 8/10 on our health scale. This means that the company’s cash flows and debt are well-managed, indicating that it is capable of paying off its debts and funding future operations. This is a positive sign for investors as it shows that the company is financially stable and capable of sustaining its operations. It may be particularly attractive to investors looking for stable and reliable dividends, as well as those seeking potential for future growth. With a high health score, the company is well-positioned to weather any financial challenges and continue delivering value to its shareholders. 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
CAPITALAND Ascendas Reit has announced the divestment of an industrial property for S$112.8 million. This move may be seen as a strategic decision to unlock value and optimize its portfolio, as the property is located in a mature industrial estate with limited growth potential. The sale proceeds could potentially be used for future acquisitions or debt repayment, which could enhance the REIT’s financial position. However, investors should also consider the impact of the divestment on the REIT’s overall portfolio and its ability to generate stable dividends in the long run.
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