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28-04-2024, 12:41 PM
Just noticed that in the latest quarterly update, Capitaland Ascot has indicated that their all in interest rate is now 3%. In the 2H 2023 annual report it was 2.4%, so, that is an increase of around 0.6% (25% higher interest rates for the year).
Assuming that the impact is over whole of FY 2024, that means, the annual interest expense (finance cost in annual report) will go from 86.8 Million SGD to SGD 108.5 million, an increase by SGD 21.7 million.
In the quarterly update, gross profit growth on a like for like basis excluding divestments is 7% "On a same-store basis, excluding acquisitions and divestments, between 1Q 2023 and 1Q 2024, gross profit was 7% higher y-o-y due to stronger operating performance". 7% growth is 23.6 Million Gross profit growth.
Assuming that all else remains equal, in essence, the DPU growth will be 1.9 million SGD divided by the 4 billion units, which is essentially flat.
I guess that is still decent performance, especially in a high interest rate scenario and DPU growth is too much to hope for in the current scenario.
Assuming that the impact is over whole of FY 2024, that means, the annual interest expense (finance cost in annual report) will go from 86.8 Million SGD to SGD 108.5 million, an increase by SGD 21.7 million.
In the quarterly update, gross profit growth on a like for like basis excluding divestments is 7% "On a same-store basis, excluding acquisitions and divestments, between 1Q 2023 and 1Q 2024, gross profit was 7% higher y-o-y due to stronger operating performance". 7% growth is 23.6 Million Gross profit growth.
Assuming that all else remains equal, in essence, the DPU growth will be 1.9 million SGD divided by the 4 billion units, which is essentially flat.
I guess that is still decent performance, especially in a high interest rate scenario and DPU growth is too much to hope for in the current scenario.
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures