CapitaLand Ascendas Reit's second-half DPU falls 6.1%

Rising interest rates weighed on CapitaLand Ascendas Reit (Clar), as the business and industrial property player saw distribution per unit (DPU) fall 6.1 per cent year on year to 7.441 cents for the six months ended Dec 31, 2023

The DPU decline came even as the Reit's gross revenue for the second half of the year rose 11 per cent to $761.7 million, while net property income (NPI) was up 4.6 per cent to $514.3 million.

For financial year 2023 overall, Clar's DPU was down 4 per cent year on year to 15.16 cents, on the back of a 1.4 per cent fall in the amount available for distribution to $654.4 million. The Reit attributed this to higher interest expenses, amid the rising rate environment.