In This Article:
Assessing the Sustainability and Growth of CapitaLand Ascendas REIT's Dividends
CapitaLand Ascendas REIT (ACDSF) recently announced a dividend of $0.07 per share, payable on 2024-03-06, with the ex-dividend date set for 2024-02-08. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into CapitaLand Ascendas REIT's dividend performance and assess its sustainability.
What Does CapitaLand Ascendas REIT Do?
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CapitaLand Ascendas REIT is a real estate investment trust focusing on the industrial and business space. As of Dec. 31, 2023, it held a SGD 16.9-billion portfolio of 227 properties across Singapore, Australia, Europe, and the U.S. The property types encompass business and science parks, high-specification industrial properties, data centers, light industrial properties, and logistics and distribution centers. The trust is externally managed by Ascendas Funds Management, a subsidiary of CapitaLand Investment, which owns an 18% stake in the trust.
A Glimpse at CapitaLand Ascendas REIT's Dividend History
CapitaLand Ascendas REIT has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down CapitaLand Ascendas REIT's Dividend Yield and Growth
As of today, CapitaLand Ascendas REIT currently has a 12-month trailing dividend yield of 2.79% and a 12-month forward dividend yield of 3.28%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, CapitaLand Ascendas REIT's annual dividend growth rate was 0.20%. Extended to a five-year horizon, this rate decreased to -2.20% per year. Based on CapitaLand Ascendas REIT's dividend yield and five-year growth rate, the 5-year yield on cost of CapitaLand Ascendas REIT stock as of today is approximately 2.50%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, CapitaLand Ascendas REIT's dividend payout ratio is 1.29, which may suggest that the company's dividend may not be sustainable.