SGX-listed CapitaLand Ascendas REIT Management Limited (SG:A17U) offers investors an attractive opportunity to diversify their portfolios with dividend income. CapitaLand Ascendas REIT currently offers a dividend yield of 5.72%, surpassing the industry’s average rate of 4%. In terms of capital appreciation, A17U stock has been rated as a Strong Buy with a potential upside of 28% in the share price.
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CapitaLand Ascendas REIT is the oldest and largest listed industrial real estate investment trust in Singapore. It holds a diverse portfolio of 230 properties located in various regions, including Singapore, the U.S., Australia, the UK, and Europe. The company’s portfolio is spread across three segments: Business Space and Life Sciences, Logistics, and Industrial and Data Centers.
More on CapitaLand Ascendas’ Dividends
The company is committed to providing its unitholders with consistent dividends and long-term capital stability. Distributions are typically made twice a year, in March and September.
The company issued an advance DPU (distribution per unit) of S$0.06141 for the period from January 1 to May 24, 2023. This amount was paid to unitholders on June 26, 2023. In its first-half results for 2023, the company declared a DPU of S$0.07719, which was 2% down compared to the same period in 2022. The company’s total amount available for distribution declined by 1% to S$327.5 million due to higher interest expenses amid the growing interest rates in the economy.
On the brighter side, CapitaLand Ascendas’ net property income increased by 6.7% year-over-year, driven by an improved occupancy rate, rental growth in renewed leases, and acquisitions. As of June 30, 2023, the company maintained a high portfolio occupancy rate of 94.4%. Looking ahead, the company has projects worth S$776.5 million in progress that are slated for completion between the second half of 2023 and the second quarter of 2026.
Is Ascendas REIT a Good Buy?
According to TipRanks’ rating consensus, A17U stock has received a Strong Buy rating backed by all Buy recommendations from three analysts. The CapitaLand Ascendas share price target is S$3.27, which is 28.2% higher than the current price level.
