Broker Name: OCBC Investment Research
Date of Report: 3 November 2025
Excerpt from OCBC Investment Research report.
Report Summary:
- OCBC maintains a BUY rating on CapitaLand Ascendas REIT (CLAR), with a fair value of SGD 3.32 and last close at SGD 2.82.
- 3Q25 portfolio rental reversions moderated to 7.6% but are expected to pick up strongly in 4Q25, driven by better-than-expected lease negotiations.
- Portfolio occupancy declined slightly to 91.3%, with notable drops in the US segment due to business space weakness in Raleigh.
- Aggregate leverage increased to 39.8% as a result of acquisition activity, while weighted average all-in debt cost fell to 3.6%.
- CLAR has a diversified portfolio across Singapore, US, UK/Europe, and Australia, focusing on business parks, logistics, data centres, and industrial properties.
- ESG rating was upgraded due to improved governance and sustainability initiatives, with 30% of borrowings under green financing and a target for all properties to achieve a green rating by 2030.
- Key risks include macroeconomic slowdown, rising interest rates, and foreign currency depreciation affecting distributions.
- Potential catalysts are stronger-than-expected industrial rent recovery, accretive growth, and divestment of non-core assets at attractive valuations.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC website : https://www.ocbc.com
