Broker Name: CGS International
Date of Report: February 6, 2026
Excerpt from CGS International report.
Report Summary
- CapitaLand Ascendas REIT (CLAR) reported FY25 results in line with forecasts, with distributable income rising 2.7% and DPU dipping 2% due to an expanded unit base from an equity raise.
- Management guided for mid-single-digit rent reversions in FY26 and continues to rejuvenate the portfolio through acquisitions, asset enhancement initiatives (AEI), and selective divestments.
- Singapore properties saw improved occupancy and strong rental reversions, while overseas portfolios delivered mixed performance, with robust rent reversions in Australia and the US, but lower UK logistics occupancy due to redevelopment plans.
- Aggregate leverage stood at 39% and cost of debt averaged 3.5% in FY25, indicating a healthy balance sheet.
- CLAR maintains its Add rating, with a slightly lower target price of S\$3.21, citing portfolio resilience and potential for further upside from ongoing AEIs and accretive acquisitions; key risks include economic downturn and weaker rental pricing power.
- ESG performance is stable, with green certifications and renewable energy initiatives progressing, though some CSR and resource use scores declined year-on-year.
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
