Out of the 5 REITs and business trusts listed on the Singapore Exchange that is sponsored by CapitaLand Investment Limited (SGX: 9CI), I am invested in 3 of them, namely CapitaLand Ascendas REIT (SGX: A17U), CapitaLand India Trust (SGX: CY6U), as well as CapitaLand Integrated Commercial Trust (SGX: C38U).

Among the trio, CapitaLand India Trust was the first to release its financial results for the period ended 30 June last Wednesday (30 July), and you can check out my review here.

Earlier this evening (04 August), CapitaLand Ascendas REIT, or CLAR, was the next one to do so, with CapitaLand Integrated Commercial Trust releasing its results tomorrow (05 August) morning.

For those unfamiliar with CLAR, it is Singapore’s first and largest listed business space and industrial REIT. Its portfolio comprises 225 properties across Singapore, Australia, the United States, and the United Kingdom/Europe, with a total value of S$16.8 billion. Geographically, the portfolio is weighted towards Singapore, which accounts for 66% of its value, followed by Australia at 13%, the United States at 11%, and the United Kingdom/Europe at 10%.

Some of the key developments since the release of its annual report back in April were the proposed acquisition of 2 properties in Singapore (a Tier III colocation data centre at 9 Tai Seng Drive, and a premium business space property at 5 Science Park Drive – both of them 100% leased to reputable and well-established end users and tenants in the digital, e-commerce, and financial services industries) at S$700.2 million. The acquisitions are expected to contribute an improvement to the REIT’s distribution payout by around 0.206 cents/unit, or 1.36% (based on its FY2024 distribution payout).

The REIT also launched a private placement in late-May for 202,430,000 new units at an issue price of S$2.47 per new unit to raise approximately S$500 million, with the proceeds used to partially fund for the 2 acquisitions described in the previous paragraph, repayment of debt, as well as fees and expenses related to the private placement exercise. Also, prior to the private placement exercise, a distribution payout of 6.479 cents/unit has been declared to the unitholders for the period between 01 January and 05 June 2025.

An Extraordinary General Meeting (EGM) was conducted on 30 July and the proposed transaction was passed.

In this post, you’ll find my review of CLAR’s latest financial figures, portfolio occupancy and debt profile, as well as its distribution payout to unitholders:

Financial Figures (1H FY2024 vs. 1H FY2025)

1H FY20241H FY2025% Variance
Gross Revenue (S$’mil)$770.1m$754.8m-2.0%
Property Operating Expenses (S$’mil)$241.7m$231.3m-4.3%
Net Property Income (S$’mil)$528.4m$523.4m-0.9%
Distributable Income to Unitholders (S$’mil)$330.8m$331.1m+0.1%

Slight declines were recorded in CLAR’s gross revenue and net property income – which can be attributed to the divestment of 3 Australia properties in February 2024, 1 Singapore logistics property in November 2024, and 1 US business space property in June 2025, as well as the decommissioning of Welwyn Garden City (in the UK) in June 2024. However, this was partially offset by contributions from a newly acquired logistics property in the US in January 2025.

The 4.3% year on year fall in property operating expenses was mainly due to properties that were divested (3 in Australia, 1 in Singapore, and 1 in the US) or decommissioned (1 in the UK), partially offset by the property which was acquired (1 in the US).

Portfolio Occupancy Profile (1Q FY2025 vs. 2Q FY2025)

CLAR has a reputation of maintaining its portfolio occupancy at above 90% over the quarters. The same can also be said for its rental reversion for new and/or renewed leases, where it has been maintained at positive percentages.

Has the REIT managed to maintain this trend in the current quarter under review (i.e., 2Q FY2025 ended 30 June 2025)?

Let us find out in the table below, where you’ll find a comparison of its portfolio occupancy profile recorded for the current quarter against that reported in the previous quarter 3 months ago (i.e., 1Q FY2025 ended 31 March 2025):

1Q FY20252Q FY2025
Portfolio Occupancy (%)91.5%91.6%
Portfolio WALE (by Gross Revenue) (years)3.8 years3.7 years
Rental Reversion (%)+11.0%+9.5%

Overall, CLAR’s portfolio occupancy continue to remain very strong – with the slight 0.1 percentage point (pp) improvement in its portfolio occupancy to 91.6% contributed by a 3.9pp jump in the occupancy of its Australia properties (from 89.2% in 1Q FY2025 to 93.1% in 2Q FY2025). However, this was partially offset by slight dips in the occupancy rates of its properties in Singapore (by 0.4%pp from 91.6% in 1Q FY2025 to 91.2% in 2Q FY2025) and in the United States (by 0.7pp from 88.0% in 1Q FY2025 to 87.3% in 2Q FY2025). The occupancy rate of its properties in the United Kingdom/Europe was stable at 98.9%.

Rental reversions for new and/or renewed leases in the various geographical locations were all in positive percentages in the range of between +3.5% (for Australia) and +10.9% (for the US) – this will aid to an improvement in the REIT’s financial performances ahead.

Lease expiries were also well-spread out – with 8.9% of leases due for renewal in the 2nd half of FY2025, an average of 18.4% of leases due for renewal each year over the next 3 years (between FY2026 and FY2028), with the remaining 35.9% of leases due for renewal only in FY2029 or later.

Debt Profile (1Q FY2025 vs. 2Q FY2025)

CLAR also boast a healthy debt profile, with its aggregate leverage maintained at under 40%, along with its debt maturity well-spread out over the years.

Just like how I have reviewed the REIT’s portfolio occupancy profile in the previous section, in the table below, you will also find a comparison of its debt profile recorded for the current quarter, against that recorded for the previous quarter 3 months ago:

1Q FY20252Q FY2025
Aggregate Leverage (%)38.9%37.4%
Interest Coverage Ratio (times)3.6x3.7x
Average Cost of Debt (%)3.6%3.7%
Average Term to Debt Maturity (years)3.1 years3.2 years
% of Borrowings Hedged at Fixed Rates (%)73.6%75.9%

CLAR’s aggregate leverage improved by 1.5pp to 37.4% as a result of the equity fund raising to raise S$500 million in May 2025.

Apart from that, the other statistics remained more or less the same compared to the previous quarter.

As far as debt maturities is concerned, it is very well-spread out – in the 2nd half of FY2025, it has 12% of borrowings due for refinancing; in the next 5 years (between FY2026 and FY2030), it has an average of about 15% of borrowings due for refinancing each year, with the remaining 14% of borrowings due for refinancing only in FY2031 or later.

Distribution Payout to Unitholders (1H FY2024 vs. 1H FY2025)

CLAR has a half-yearly distribution payout frequency.

In the table below, you’ll find a comparison of its distribution payout declared for the 1st half of FY2025 compared against that declared a year ago (i.e., for the 1st half of FY2024):

1H FY20241H FY2025% Variance
Distribution Per Unit (S$’cents)7.524 cents7.477 cents-0.6%

The slight 0.6% year on year dip in its distribution per unit to 7.477 cents/unit was due to a larger unit base – which grew by 0.7% year on year to 4,428 million units (from 4,397 million units a year ago), as a result of the private placement in June 2025, issuance of units for the payment of divestment fees (interested person transaction) in January 2025, and the partial payment of base management fees in December 2024 and June 2025.

Out of the 7.477 cents/unit declared, 6.479 cents/unit (for the period between 01 January and 05 June 2025) has already been paid out to unitholders on 30 June 2025 (because of the private placement exercise conducted in late-May).

Hence, you’ll only receive 0.998 cents/unit this time round (for the period between 06 June and 30 June 2025), and if you are a unitholder of CLAR, do take note of the following dates on the distribution payout:

Ex-Date: 11 August 2025
Record Date: 12 August 2025
Payout Date: 04 September 2025

CEO Mr William Tay’s Comments & Outlook (Extracted from the REIT’s Press Release)

“Despite the ongoing macroeconomic uncertainties, CLAR’s distributable income of S$331.1 million and DPU of 7.477 cents for 1H 2025 were stable. This underscores the continued strength of our diversified portfolio, operational management and disciplined execution of our capital management strategies.”

CLAR is set to add approximately S$725 million of prime, income producing assets in Singapore. 9 Tai Seng Drive, a Tier III colocation data centre and 5 Science Park Drive, a premium business space property are well-located, modern properties that are fully leased to reputable tenants and will contribute positively to our income stream. These two properties will further anchor CLAR in Singapore, with Singapore accounting for about 67% of AUM when the transactions are completed. We will stay responsive to changing market conditions and are confident of navigating through these uncertain times.”

Closing Thoughts

On the whole, the only slight negative in CLAR’s latest set of results was the low single-digit percentage dip in its gross revenue and net property income (as a result of properties that were divested as well as decommissioned), and also in its distribution per unit (due to a larger unit base).

Apart from that, its portfolio occupancy continue to remain strong – with the overall occupancy rate of its properties at 91.6%, and in the various geographical locations, they are also above 90% – except for the US, at 87.3%. The REIT have also continued to record a positive rental reversion for new and/or renewed properties in the quarter, at +9.5% – which will contribute positively towards its financial performances in the quarters ahead.

Finally, its debt profile is also a very healthy one – particularly, its aggregate leverage, at 37.4%, is a good debt headroom away from the regulatory limit of 50%. Debt expiry over the next few years are also well-spread out, and the REIT has a rather higher percentage (at 75.9%) of borrowings at fixed rates.

With that, I have come to the end of my review of CLAR’s results for 1H FY2025. Do take note that all the opinion expressed above are purely for educational purposes only. They are not meant as any buy or sell calls for the REIT’s units. You should do your own due diligence before you make any investment decisions.

Related Documents

Disclaimer: At the time of writing, I am a unitholder of CapitaLand Ascendas REIT.

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