CapitaLand Ascendas REIT Announces Strategic Acquisition of DHL Canal Winchester Logistics Property for S\$94.5 Million

Key Investment in the U.S. Midwest Logistics Market

CapitaLand Ascendas REIT (CLAR) has unveiled the acquisition of a modern, Class A logistics property known as DHL Canal Winchester in Columbus, Ohio, USA, for S\$94.5 million (US\$73.8 million). This transaction is executed via a sale and leaseback arrangement with DHL, a global logistics leader. The property will be immediately leased back to DHL under a long-term agreement, ensuring income stability for the REIT.

Highlights and Strategic Rationale

• Expansion in a Key Logistics Market: This acquisition strengthens CLAR’s presence in the U.S. Midwest, recognized as a critical logistics hub due to its connectivity to air, rail, and road networks. The asset is located less than 30 km from downtown Columbus and Rickenbacker International Airport, a major international cargo hub with direct flights to global markets.
• Modern, High-Quality Asset: The property is a newly completed (2024), single-storey logistics facility with a gross floor area (GFA) of 755,160 sq ft. Designed to market-leading specifications, it features a clear height of 12.2 meters (40 feet), cross-dock configuration, multiple ingress/egress points, and LED lighting.
• Stable, Long-Term Income: DHL will fully occupy the property under a lease expiring in December 2030, with options for two additional five-year renewals. The lease includes a built-in annual rental escalation of 3.5%, supporting resilient and growing income streams for CLAR. The weighted average lease expiry is approximately five years.
• Accretive to Distribution Per Unit (DPU): The acquisition is expected to be DPU-accretive. The first-year net property income (NPI) yield is projected at 7.4% pre-transaction costs and 7.2% post-transaction costs. On a pro forma basis, the acquisition would increase DPU by approximately 0.012 Singapore cents or 0.1% if it had been completed at the start of 2024.
• Discount to Independent Valuation: The purchase price represents a 3.3% discount to the independent market valuation of S\$97.7 million (US\$76.3 million) as of 1 January 2026, potentially indicating attractive entry pricing for unitholders.
• Portfolio Enhancement: Upon completion, CLAR’s U.S. logistics portfolio will expand to 21 properties across five cities, with a total GFA of approximately 5.9 million sq ft. The proportion of modern logistics assets in its U.S. logistics portfolio will rise to 52.4% by assets under management.
• Favorable Market Dynamics: The Columbus industrial market is robust, with positive net absorption exceeding new supply, leading to a declining vacancy rate (7.0% in 3Q 2025) and rising rents (up 2.5% year-on-year). Ohio ranks highly for business environment, further supporting the investment thesis.
• Financing and Timeline: The total acquisition cost of S\$96.4 million (US\$75.3 million) will be funded through a mix of internal resources, divestment proceeds, and/or existing debt facilities. Completion is targeted for the first quarter of 2026.

Key Information for Shareholders

• Potential Share Price Catalyst: This is a price-sensitive announcement for CLAR unitholders. The accretive acquisition, high-quality tenant, long-term lease structure with escalations, and discount to valuation are all positive factors that could influence market sentiment and share valuation.
• Risk Mitigation: The transaction leverages a strong partnership with DHL and enhances income resilience through a stable, long-term lease. The Midwest market’s logistics fundamentals are sound, further reducing operational risks.
• Portfolio Diversification: The acquisition expands CLAR’s geographic and asset diversification, which may support greater stability in distributions.
• Financial Impact: The DPU accretion and attractive NPI yield indicate that the transaction should be immediately beneficial to unitholders, even after accounting for transaction costs.

Property Details

• Address: 8695 Basil Western Road, Canal Winchester, Ohio 43110
• Land Tenure: Freehold
• Occupancy Rate: 100% (leased to DHL)
• Gross Floor Area: 755,160 sq ft
• Lease Expiry: Approximately 5 years (weighted average), with renewal options

About CapitaLand Ascendas REIT

CapitaLand Ascendas REIT is Singapore’s first and largest listed business space and industrial REIT, with S\$17.7 billion in investment properties under management as of 30 September 2025. The portfolio spans Singapore, Australia, the US, and the UK/Europe, with a strong focus on tech and logistics properties. The REIT is managed by CapitaLand Ascendas REIT Management Limited, a subsidiary of CapitaLand Investment Limited, a leading global real asset manager.

Contact Information

• Investor Relations: Andrea Ng, Assistant Vice President, Listed Funds, Investor Relations ([email protected], +65 6713 1150)
• Media: Joan Tan, Vice President, Group Communications ([email protected], +65 6713 2864)

Disclaimer

This article is for informational purposes only and does not constitute financial advice or an offer to purchase or sell any securities. Investments in real estate investment trusts are subject to investment risks, including the possible loss of the principal amount invested. Past performance is not indicative of future results. Readers should conduct their own due diligence and consult a qualified financial adviser before making any investment decisions.

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