CapitaLand Ascendas REIT: Mixed Business Update; Units Attractive

CapitaLand Ascendas REIT had a mixed first-quarter 2024. Occupancy rates fell across all geographies leading to a portfolio occupancy rate of 93.3% as of March 31, 2024, 0.9 percentage points lower than the previous quarter. Notably, the occupancy rate for its United States portfolio decreased to 89.5% from 90.4% in the previous quarter due to tenants who exited its business property in Raleigh and logistics property in Kansas City. The occupancy rate for its Australian properties fell the most on a quarter-on-quarter basis by 2.1 percentage points to 96.6% due to the lease expiry of a logistics property occupied by a single tenant in Sydney. Nevertheless, the occupancy rate remains healthy, in our view.