CapitaLand Ascendas REIT 1H 2025 Financial Results Analysis
CapitaLand Ascendas REIT (“CLAR”) has released its financial results for the first half of 2025, covering the period from 1 January 2025 to 30 June 2025. This analysis focuses on the key financial metrics, performance trends, and strategic developments disclosed in the report, providing investors with clear insights into the REIT’s financial health and prospects.
Key Financial Metrics and Performance Trends
| Metric |
1H 2025 |
2H 2024 |
1H 2024 |
YoY Change |
HoH Change |
| Total Gross Revenue |
\$754.75M |
(not disclosed) |
\$770.07M |
-2.0% |
N/A |
| Net Property Income (NPI) |
\$523.42M |
(not disclosed) |
\$528.42M |
-0.9% |
N/A |
| Singapore NPI |
\$359.16M |
(not disclosed) |
\$351.09M |
+2.3% |
N/A |
| Australia NPI |
\$45.15M |
(not disclosed) |
\$54.34M |
-16.9% |
N/A |
| UK/Europe NPI |
\$48.30M |
(not disclosed) |
\$53.67M |
-10.0% |
N/A |
| United States NPI |
\$70.82M |
(not disclosed) |
\$69.32M |
+2.2% |
N/A |
Note: Data for previous quarter (2H 2024) and EPS/dividends were not disclosed in the report.
Historical Performance and Sector Trends
- Singapore: NPI increased by 2.3% YoY, driven mainly by lower operating expenses despite the divestment of a property in November 2024. Business Space and Life Sciences saw a 5.2% YoY NPI rise, while Industrial and Data Centres declined by 2.7% and Logistics rose by 6.2%.
- Australia: NPI dropped by 16.9% YoY, primarily due to divestments and lower occupancies at certain properties.
- UK/Europe: NPI fell by 10.0% YoY, attributed mainly to lower occupancies and higher operating expenses.
- United States: NPI improved by 2.2% YoY, supported by higher gross revenue despite a slight increase in property expenses.
Occupancy Overview
The overall portfolio occupancy rate stands at 91.8% as of 30 June 2025, down from 92.8% at end-2024 and 93.1% a year ago. Singapore remains resilient, but select assets in Australia and Europe have seen more pronounced declines.
Notable Corporate Actions and Portfolio Changes
- Acquisitions: Completion of land for Summerville Logistics Center (US) in November 2024 and DHL Indianapolis Logistics Center (US) in January 2025.
- Divestments: Sale of 21 Jalan Buroh (Singapore) in November 2024 and Parkside (Portland, US) in June 2025. In Australia, three logistics properties were divested in February 2024.
- Redevelopments: Several properties, such as 27 IBP in Singapore and Welwyn Garden City in the UK, were decommissioned for redevelopment.
Rental Rates and Market Position
| Sector |
CLAR Range (psf/month) |
CLAR Weighted Average |
Market Median |
| Business & Science Park (Rest of Island) |
\$2.35 – \$5.62 |
\$4.19 |
\$3.55 |
| Business & Science Park (City Fringe) |
\$3.99 – \$8.50 |
\$6.74 |
\$6.10 |
| Industrial & Data Centres |
\$1.39 – \$6.61 |
\$3.18 |
\$1.41 – \$1.81 |
| Logistics |
\$1.04 – \$3.22 |
\$1.71 |
\$1.38 – \$1.90 |
Portfolio Diversification
The REIT maintains a diversified portfolio by geography and sector, with significant exposure to Singapore, Australia, the United States, and Europe. Tenant industries are broad-based, with top contributions from logistics & supply chain, engineering, and biomedical sciences.
Errors, Inconsistencies, and Exceptional Items
- Several properties showed sharp changes in occupancy, notably decommissioned or newly acquired assets, which may create volatility in short-term NPI numbers.
- No mention of asset revaluation gains/losses or exceptional earnings/expenses in the disclosed sections.
Dividends and Remuneration
Dividend details and directors’ remuneration are not disclosed in this supplementary report.
Significant Events and Risk Factors
- No mention of natural disasters, legal disputes, or significant tax/policy changes in the period reviewed.
- Risks remain around occupancy recovery in Australia and Europe, which have seen notable declines.
Outlook and Strategic Considerations
The overall performance for 1H25 is neutral to mildly weak, as total NPI and revenue have declined marginally year-over-year, with resilience in Singapore and the US offset by softness in Australia and Europe. The REIT continues to recycle capital through divestments and reinvestments in logistics assets, particularly in the United States.
Investor Recommendations
- If you are currently holding CapitaLand Ascendas REIT: Maintain your position but monitor recovery in overseas portfolios and further asset recycling moves. The REIT’s Singapore performance and active portfolio management are positives, but ongoing occupancy pressure abroad could impact returns.
- If you are not holding CapitaLand Ascendas REIT: Consider waiting for clearer signs of recovery in Australia/Europe occupancies or a more attractive entry valuation. However, the REIT remains a core industrial/logistics play in Singapore and offers diversification across developed markets.
Disclaimer: This analysis is based exclusively on the attached report and does not constitute investment advice. Please conduct your own due diligence or consult a licensed financial advisor before making investment decisions.
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