CapitaLand Ascendas REIT (CLAR) is set to enhance its portfolio quality by targeting an asset divestment of S$300-S$500m in 2025, primarily from its Singapore holdings. The REIT’s first half of 2025 results align with expectations, showing healthy rent reversions of 8% in Q2 and 9.5% in the first half, despite a slightly subdued occupancy rate. The REIT aims to maintain these rent reversions across its markets.
The strategic move to divest assets is expected to bolster CLAR’s performance in the second half of the year, with acquisitions and redevelopment contributions playing a significant role. Analyst Vijay Natarajan maintains a “BUY” recommendation for CLAR, with a target price of S$3.20, representing a 14% upside and a forecasted yield of 5.4% for the financial year 2025.
The REIT’s diversified exposure to business parks, logistics, and hi-tech industrial spaces positions it well for organic growth through asset redevelopment, improved occupancy rates, and rental enhancements. Backed by a strong sponsor, CLAR continues to be a key player in the industrial real estate sector.
Looking ahead, the REIT’s focus on strategic divestments and acquisitions is anticipated to drive its growth trajectory, ensuring sustained performance and value for its investors.
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