Broker Name: OCBC Group Research
Date of Report: 6 February 2026
Excerpt from OCBC Group Research report.
Report Summary
- CapitaLand Ascendas REIT (CLAR) is Singapore’s largest listed industrial REIT, with significant exposure across business parks, science parks, logistics, data centres, suburban offices, and industrial assets in Singapore, US, Europe, and UK.
- FY25 gross revenue and net property income rose, but distribution per unit (DPU) dipped due to higher finance costs and an enlarged unit base after a June 2025 equity fundraising.
- Rental reversions remained robust at 12% in FY25, mainly driven by Australia, US, and Singapore, but are expected to moderate to mid-single digits in FY26.
- Portfolio occupancy slipped to 90.9% overall, with notable drops in UK/Europe due to planned redevelopment, but leverage and borrowing costs improved slightly.
- CLAR has actively rejuvenated its portfolio, with SGD1.5b acquisitions and SGD436m in redevelopments and asset enhancements, targeting stabilised yields of 6-8%.
- Key risks include macroeconomic slowdown, rising interest rates, and foreign currency depreciation; potential catalysts are stronger industrial rents, accretive acquisitions, and profitable divestments.
- OCBC maintains a BUY rating with a fair value estimate of SGD3.28, reaffirming CLAR as a top S-REIT pick.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com/group/research
