Broker Name: DBS Bank
Date of Report: 07 Oct 2025
Excerpt from DBS Bank report.
- CapitaLand Ascendas REIT (CLAR) announced the acquisition of three fully occupied industrial assets in Singapore, valued at approximately SGD565.8 million, with an estimated DPU accretion of 0.8%. This brings CLAR’s total acquisitions in FY2025 to around SGD1.3 billion.
- The portfolio features a long WALE of 5.5 years, built-in annual rental escalations, and current rents about 15% below market levels. Gearing is expected to stabilise at around 40%, with proceeds from divestments quickly redeployed.
- CLAR continues to be highly active in portfolio optimisation, with recent acquisitions and divestments supporting stable earnings and income profile. The properties acquired are high-specification assets with potential for positive rental reversions. The initial NPI yield is about 6.1%, and the earnings impact will be reflected in FY2026.
- DBS maintains a BUY rating with a target price of SGD3.20, citing attractive yield, active capital recycling, and the REIT’s ability to withstand higher financing costs and market challenges.
Report Summary:
- CLAR has executed SGD1.3 billion in acquisitions and divestments in 2025, maintaining strong occupancy and gearing, with continued portfolio optimisation.
- DBS views CLAR as attractively valued and maintains a BUY recommendation with a TP of SGD3.20, supported by stable earnings and prospects for rental growth.
Above is an excerpt from a report by DBS Bank. Clients of DBS Bank can be the first to access the full report from the DBS website: https://www.dbs.com
