CapitaLand Ascendas REIT Deepens European Presence with S\$185.4 Million Acquisition in Spain

Key Highlights

• First Entry into Spain: CapitaLand Ascendas REIT (CLAR) has acquired its first logistics portfolio in Spain, consisting of six Grade A assets in Madrid and Barcelona, for a total gross consideration of S\$185.4 million (€124.0 million).
• Portfolio Details: The assets include two properties in Madrid and four in Barcelona, totaling a gross floor area (GFA) of 98,825 sqm, all fully occupied.
• DPU Accretion: The acquisition is expected to be distribution per unit (DPU) accretive, estimated to increase DPU by 0.014 Singapore cents or 0.1% on a pro forma basis, assuming completion on 1 January 2025.
• Yield: First-year net property income (NPI) yield is projected at 6.3% pre-transaction costs and 6.5% post-transaction costs.
• Portfolio Value Impact: The acquisition expands CLAR’s logistics portfolio to five countries and increases its logistics portfolio value to S\$4.7 billion, now accounting for 26% of the total portfolio (up from 24%). Total portfolio value stands at S\$18.5 billion.
• Discount to Market Value: Acquisition price is a 5.9% discount to the independent market valuation of S\$197.0 million (€131.7 million).
• WALE Extension: Weighted Average Lease to Expiry (WALE) for CLAR’s UK/Europe portfolio grows from 5.0 years to 5.3 years (pro forma); Spain portfolio WALE is 9.1 years.
• Leverage: Aggregate leverage increases marginally to 39.1% (pro forma) from 39.0% as at 31 December 2025.
• Tenant Quality: The properties are fully occupied by reputable multinational corporations from diverse industries including retail, fashion, food & groceries, electronics, and transportation & logistics.

Detailed Acquisition Overview

The acquisition comprises two logistics properties in Madrid (Torrejón de Ardoz, near the city center and international airport, along the prime A-2 highway) and four in Barcelona (Sant Feliu de Buixalleu, five minutes from the AP-7 motorway, within an hour from Barcelona airport and the French border). These locations are strategic, leveraging Spain’s well-developed road, rail, and port infrastructure, serving as gateways between Europe, North Africa, and Latin America.

The properties feature modern specifications, including clear ceiling heights of 10-13 metres, superior dock provision, and truck yards. All properties are 100% occupied, with index-linked annual rental adjustments, ensuring stable and growing income streams.

The acquisition was funded through a mix of internal resources and debt facilities, with an assumed funding structure of 60% equity and 40% debt. CLAR expects total investment costs to be S\$181.0 million (€121.0 million), including acquisition fees and transaction-related costs, less adjustments.

The acquisition strengthens CLAR’s strategy of expanding in developed markets with healthy fundamentals, acquiring modern, well-located assets fully leased to high-quality tenants.

Asset Details

Total Portfolio GFA: 98,825 sqm – 100% occupancy.

The acquisition was negotiated on a willing-buyer and willing-seller basis, completed through sales and purchase agreements with unrelated third parties. The purchase consideration represented a notable discount to market value, enhancing the risk-adjusted returns for shareholders.

Shareholder Information and Potential Price Sensitivity

• DPU Accretion: The accretive acquisition is expected to increase distribution per unit, which can be price sensitive and positively affect share values.
• Portfolio Diversification: The entry into Spain, a major logistics hub, diversifies CLAR’s portfolio and reduces concentration risk.
• Discounted Purchase: Acquisition at a 5.9% discount to market value may be viewed favorably by investors seeking value creation.
• Leverage Impact: Leverage increases only marginally, maintaining a prudent capital structure.
• Long WALE: The extended weighted average lease to expiry (WALE) contributes to income stability, a key metric for REIT investors.
• Tenant Quality: Full occupancy by reputable multinationals from diverse sectors ensures secure cash flows.
• Growth Strategy: The acquisition aligns with CLAR’s disciplined expansion in developed markets and logistics—a sector with robust fundamentals.

About CapitaLand Ascendas REIT and CapitaLand Investment Limited

CLAR is Singapore’s first and largest listed business space and industrial REIT, with a global portfolio anchored in Singapore and a strong focus on tech and logistics properties in developed markets. As at 31 December 2025, its investment properties under management stood at S\$18.2 billion, with 226 properties across Singapore, Australia, the US, and UK/Europe. Major tenants include Sea Group, DSO National Laboratories, Stripe, Entserve UK, Singtel, DBS Bank, DHL, Seagate Singapore, and Citibank.

CLAR is managed by CapitaLand Ascendas REIT Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited (CLI), a leading global real asset manager with S\$125 billion of funds under management as of 31 December 2025. CLI focuses on diverse real asset classes and aims for responsible growth, delivering long-term economic value and environmental/social contributions.

Contact Information

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

Disclaimer

This article may contain forward-looking statements. Actual future performance, outcomes, and results may differ materially due to various risks, uncertainties, and assumptions, including general industry and economic conditions, interest rate trends, capital availability, competition, occupancy rates, rental income, operating expenses, and governmental policies. The past performance of CapitaLand Ascendas REIT is not indicative of future performance. Investments in CLAR units are subject to risks, including possible loss of principal, and there is no guarantee of liquidity on the Singapore Exchange. This article is for information only and does not constitute an offer to acquire, purchase, or subscribe for CLAR units.

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