CapitaLand Ascendas REIT (CLAR) has announced a stable distributable income of S$331.1 million for the first half of 2025, marking a 0.1% increase year-on-year. Despite a slight decline in Distribution per Unit (DPU) to 7.477 Singapore cents, the REIT’s portfolio remains robust, with a healthy occupancy rate of 91.5% and a positive rental reversion of 9.5% on renewed leases.
The REIT’s strategic acquisitions and redevelopments are set to enhance its portfolio. Notably, the acquisition of three properties in Singapore and the US, valued at S$878 million, and the completion of the 1 Science Park Drive redevelopment for S$300.2 million, are expected to contribute to long-term returns. William Tay, CEO of the Manager, highlighted the strength of CLAR’s diversified portfolio amidst macroeconomic uncertainties, stating, “This underscores the continued strength of our diversified portfolio, operational management and disciplined execution of our capital management strategies.”
In 1H 2025, CLAR completed the acquisition of the DHL Indianapolis Logistics Centre in the US for S$153.4 million. Additionally, the acquisitions of 9 Tai Seng Drive and 5 Science Park Drive in Singapore, totalling S$724.6 million, were approved by unitholders and are expected to be completed in the second half of 2025. These properties are fully leased and will further strengthen CLAR’s income stream.
The REIT’s proactive capital recycling strategy saw the divestment of Parkside in Portland, US, for S$26.5 million, achieving a 45% premium over its market valuation. With a portfolio worth S$16.8 billion, CLAR continues to focus on value-adding initiatives and maintaining a healthy financial position, with an aggregate leverage of 37.4% and a stable cost of debt at 3.7%.
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