CapitaLand Ascendas REIT (CLAR) has announced its business updates for the first quarter of 2025, highlighting significant investments totalling $458.2 million across the US and Singapore. These strategic moves are aimed at generating new income streams and enhancing portfolio value. Notably, CLAR completed the acquisition of the DHL Indianapolis Logistics Centre for $153.4 million, a modern Class A logistics property with an 11-year lease term, ensuring income stability. Additionally, the redevelopment of 1, 1A, and 1B Science Park Drive in Singapore was finalised for $300.2 million, achieving a 95% leasing milestone.
The REIT’s operational performance remains stable, with a healthy portfolio occupancy of 91.5% as of 31 March 2025. The average portfolio rental reversion for leases renewed in Q1 2025 stood at +11.0%, with expectations for a positive mid-single digit range for the full year. The portfolio’s weighted average lease expiry by gross revenue is stable at 3.8 years, providing further income stability.
CLAR’s disciplined capital management is evident with a healthy aggregate leverage of 38.9% and a stable weighted average all-in cost of debt at 3.6%. The REIT maintains a strong financial position, supported by an A3 credit rating, which facilitates access to a wide range of funding options at competitive rates.
With a well-diversified portfolio of approximately 1,780 tenants across more than 20 industries, CLAR is committed to prudent capital management and closely monitoring the global economic environment. The REIT’s proactive asset management and strategic investments position it well to navigate upcoming challenges.
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