Broker Name: CGS International
Date of Report: October 31, 2025
Excerpt from CGS International report.
- CapitaLand Ascendas REIT (CLAR) reported a slight dip in portfolio occupancy to 91.3% in 3Q25, mainly due to lower occupancy in Singapore and the US, but saw strong rental reversion of +7.6% and raised its reversion guidance to low double-digits for FY25F.
- CLAR is actively redeveloping and acquiring assets, with S\$751m in ongoing enhancements and new acquisitions in Singapore, and is expected to see positive earnings impact from these moves from FY26F onwards.
- Overseas portfolio performance was mixed, with Australia’s occupancy improving and the US seeing positive rent reversions, while the UK/Europe experienced negative reversion in data centres but a successful divestment at a premium valuation.
- Financially, CLAR maintains a healthy balance sheet, with aggregate leverage at 39.8%, cost of debt at 3.6%, and a forecasted dividend yield of 5.4–5.9% over FY25F-FY27F.
- ESG efforts remain robust, with the REIT ranked B by LSEG, ongoing green certifications, and a focus on sustainability targets such as renewable energy usage and emissions reduction.
- CGS International reiterates its “Add” rating on CLAR with a target price of S\$3.27, citing its diversified portfolio, resilient performance, and potential for future growth from asset enhancement and acquisitions.
- Key risks include prolonged economic downturns that could impact rental pricing and reversions.
Report Summary
- CLAR’s portfolio showed resilience with strong rental reversion guidance and ongoing asset enhancement and acquisitions, positioning it for future growth and healthy returns. ESG performance and balance sheet remain robust, supporting its “Add” rating and positive outlook.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
