Broker Name: DBS Group Research
Date of Report: 07 October 2025
Excerpt from DBS Group Research report.
Report Summary
- CapitaLand Ascendas REIT (CLAR) is Singapore’s largest industrial landlord, with a diversified portfolio across Singapore, UK, Europe, Australia, and the US, valued at S\$16.8bn.
- The REIT announced the acquisition of three fully occupied Singapore assets worth approximately SGD565.8mn, expected to deliver a 0.8% distribution per unit (DPU) accretion, with gearing maintained at around 40%.
- CLAR has actively recycled capital, divesting and acquiring assets to optimize its portfolio, and is expected to report stable DPU in FY25 and FY26 despite a higher interest rate environment.
- The properties acquired are 100% occupied, with a weighted average lease expiry (WALE) of 5.5 years and annual rental escalations of 1-5%.
- The REIT benefits from structural tailwinds such as e-commerce growth, data centers, and office decentralization, and continues to unlock value through asset rejuvenation and redevelopment, including its Science Parks.
- Risks include rising financing costs, but these are mitigated by a high proportion of loans hedged to fixed rates and a well-staggered debt maturity profile.
- DBS maintains a BUY rating on CLAR with an unchanged 12-month target price of SGD3.20, citing its attractive yield, proactive management, and strong earnings visibility from a diversified tenant base.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website: https://www.dbs.com/research
