Broker: UOB Kay Hian
Date of Report: Monday, 25 May 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Stock Focus: CapitaLand Ascendas REIT (CLAR SP)
- Action: BUY (Maintained)
- Target Price: S\$3.78
- Current Price (at report): S\$2.52
- Upside: +50%
- Key Idea: CLAR is acquiring three assets (25 Loyang Crescent, Ascent, and a Japan data centre) for S\$1.4b, strengthening its logistics, life sciences, and data centre presence in Singapore and marking its entry into Japan. These acquisitions are expected to be DPU accretive (2.1% for 2025), with further redevelopment and expansion potential.
- Highlights:
- 25 Loyang Crescent offers untapped redevelopment potential to add 1.6m sf of logistics space.
- The Osaka data centre is fully leased to an investment-grade hyperscaler with a long WALE (14.2 years) and built-in rent escalation.
- After these acquisitions, Singapore will account for 66% of CLAR’s AUM, with the overall portfolio showing steady occupancy and positive rental reversions.
- Dividend yield expected to be around 6.0-6.8% over 2024-2028.
- Implications: The acquisitions and developments underpin stable and growing returns, with management committed to recycling assets and pursuing growth in logistics, life sciences, and data centres. The target price of S\$3.78 offers significant upside from the current price, making CLAR an attractive BUY for investors seeking a resilient and diversified REIT with expansion potential.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website : https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc
