Brief Overview:
CapitaLand Ascendas REIT (SGX: A17U), or CLAR, is Singapore’s first and largest-listed business space and industrial REIT.
It has an investment focus on properties in developed markets across 3 segments: Business Space & Life Sciences, Industrial & Data Centres, and Logistics
As at 31 December 2025, CLAR’s portfolio comprises 226 properties in Singapore, the United States, Australia, as well as in the United Kingdom/Europe, valued at S$18.2 billion.
Notable Developments Since the REIT’s 3Q FY2025 Business Update:
November 2025 – Completion of divestment of a logistics property at Astmoor Road in the United Kingdom, at S$52.5 million, representing a 13% premium above its market valuation of S$46.6 million.
December 2025 – Completion of divestment of a logistics property at 95 Gilmore Road in Queensland, Australia at a 9.5% premium above independent valuation of S$82.2 million as at 30 September 2025, and a 17.2% premium from the original purchase price of S$76.8 million when the REIT purchased the property in October 2025.
December 2025: In a bourse filing on 30 December, the REIT updated on the completion of acquisition of 3 properties in Singapore (2 Pioneer Sector 1, Tuas Connection, and 9 Kallang Sector) for approximately S$565.8 million. At the same time, it has divested a property in the United States (8700 – 8770 Nimbus – a business space property) for about US$6.6 million – a 10% premium to the independent valuation, and 16% higher than its purchase price in 2019.
January 2026: CLAR has appointed former Keppel REIT CEO Paul Tham as one of the REIT’s non-executive and non-independent director.
January 2026: The REIT has announced the acquisition of DHL Canal Wincheste, a modern Class A logistics property in Columbus, Ohio (United States), for US$94.5m (a 3.3% discount from market valuation). The property is leased back to DHL until end-2030, with options to renew for 2 additional 5-year terms.
Financial Performance (2H FY2024 vs. 2H FY2025):
| 2H FY2024 | 2H FY2025 | % Gain/Loss | |
| Gross Revenue (S$’mil) | $753.0m | $783.8m | +4.1% |
| Property Operating Expenses (S$’mil) | $231.4m | $239.7m | +3.6% |
| Net Property Income (S$’mil) | $521.5m | $544.1m | +4.3% |
| Distributable Income to Unitholders (S$’mil) | $338.0m | $347.2m | +2.7% |
On the whole, it was a stable set of results reported by CLAR, with its gross revenue, net property income, and distributable income to unitholders all recording a low-single digit percentage improvement.
The 4.1% year-on-year increase in the REIT’s gross revenue to S$783.8 million was mainly due to the acquisition of 1 US logistics property in January 2025, as well as 1 data centre and 1 business space property in Singapore in August 2025. However, this was partly offset by the divestment of 1 Singapore logistics property in November 2024, 1 US business space property in June 2025, and divestments completed in 2H FY2025.
As a result of a slower pace of increase in its property operating expenses (by 3.6% year-on-year) compared to its gross revenue (by 4.1% year-on-year), CLAR’s net property income grew by 4.3% year on year to S$544.1 million.
Financial Performance (FY2024 vs. FY2025):
| FY2024 | FY2025 | % Gain/Loss | |
| Gross Revenue (S$’mil) | $1,523.0m | $1,538.6m | +1.0% |
| Property Operating Expenses (S$’mil) | $473.1m | $471.0m | -0.4% |
| Net Property Income (S$’mil) | $1,049.9m | $1,067.6m | +1.7% |
| Distributable Income to Unitholders (S$’mil) | $668.8m | $678.3m | +1.4% |
For the full year, CLAR’s financial performance was also a stable one, with its gross revenue, net property income, and distributable income to unitholders recording a 1+% year-on-year improvement.
Gross revenue inched up by 1.0% year on year to S$1,538.6 million as a result of contributions from newly acquired properties (1 US property in January 2025, and 2 Singapore properties in August 2025), partly offset by absence of income from 13 properties (4 in Australia, 6 in Singapore, 2 in the US, and 1 in the UK) that were divested between February 2024 and December 2025.
Coupled with a 0.4% year-on-year dip in its property operating expenses, CLAR’s net property income saw a 1.7% year-on-year increase to S$1,067.6 million.
Portfolio Occupancy Profile (3Q FY2025 vs. 4Q FY2025):
| 3Q FY2025 | 4Q FY2025 | |
| Portfolio Occupancy (%) | 91.3% | 90.9% |
| Portfolio WALE (by Gross Revenue) (years) | 3.6 years | 3.7 years |
| Rental Reversion (%) | +7.6% | +19.6% |
CLAR’s portfolio occupancy inched down by 0.4 percentage points (pp) to 90.9%, due to slight declines in the occupancy rates of its properties in Australia (by 0.4pp from 94.8% in 3Q to 94.4% in 4Q), as well as in the United Kingdom/Europe (by 6.8pp from 98.8% in 3Q to 92.0% in 4Q). However, the occupancy rates of its properties in Singapore and in the United States edged up by 0.8pp and 0.2pp respectively.
Compared to the previous quarter, the REIT’s rental reversion saw a huge 12.0pp jump to +19.6%, with new and/or renewed leases in all the geographical locations recording a positive rental reversion of between +9.3% and +20.2%.
Debt Profile (3Q FY2025 vs. 4Q FY2025):
| 3Q FY2025 | 4Q FY2025 | |
| Aggregate Leverage (%) | 39.8% | 39.0% |
| Interest Coverage Ratio (times) | 3.6x | 3.6x |
| Average Cost of Debt (%) | 3.6% | 3.5% |
| Average Term to Debt Maturity (years) | 3.3 years | 3.1 years |
| % of Borrowings Hedged at Fixed Rates (%) | 77.6% | 75.4% |
Overall, there was a slight improvement to CLAR’s debt profile compared to the previous quarter, where its aggregate leverage improved by 0.8pp to 39.0%, and its average cost of debt inching down by 0.1pp to 3.5%.
Debt maturity over the next 5 years (between FY2026 and FY2030) was well-staggered out, with an average of 13% of borrowings due for refinancing each year, with the remainder of the borrowings due for refinancing only in FY2031 or later.
Distribution Payout to Unitholders (2H FY2024 vs. 2H FY2025):
| 2H FY2024 | 2H FY2025 | % Gain/Loss | |
| Distribution Per Unit (S$’cents) | 7.681 cents | 7.528 cents | -2.0% |
The slight 2.0% year-on-year decline in CLAR’s distribution per unit to 7.528 cents was due to a higher unit base from the REIT’s equity fundraising in June 2025, issuance of units for the payment of divestments and acquisition fees in January 2025 and September 2025 respectively, as well as issuance of units for the partial payment of base management fees in June 2025 and December 2025.
If you are a unitholder of CLAR, do take note of the following dates on its latest distribution payout:
Ex-Date: 12 February 2026
Record Date: 13 February 2026
Payout Date: 13 March 2026
Distribution Payout to Unitholders (FY2024 vs. FY2025):
| FY2024 | FY2025 | % Gain/Loss | |
| Distribution Per Unit (S$’cents) | 15.205 cents | 15.005 cents | -1.3% |
Similar to 2H FY2025, CLAR’s distribution payout to unitholders for the full year also saw a 1.3% year-on-year dip to 15.005 cents from a higher unit base as a result of an equity fundraising exercise in June 2025, issuance of units for the payment of divestment and acquisition fees in January 2025 and September 2025 respectively, as well as issuance of units for the partial payment of base management fees in June 2025 and December 2025.
Chairman & CEO’s Comments & Outlook (from the REIT’s Press Release):
Chairman Dr Beh Swan Gin:
“We remained disciplined and focused on executing our multi-pronged strategy for growth, and consolidating CLAR’s position as a global REIT anchored in Singapore. The portfolio has grown to S$18.2 billion, a 33% increase from S$13.7 billion five years ago. In 2025, the team acquired S$1.5 billion of high-quality assets, largely in Singapore which remains the cornerstone of our portfolio. These investments strengthened CLAR’s earnings resilience, enhanced our portfolio quality, and positioned CLAR for sustainable long-term growth. Our ability to transact at scale reflects the depth of our local market knowledge, strong support from our Sponsor, the CapitaLand Group, and disciplined capital management. Looking ahead, we will remain selective and proactive in evaluating growth opportunities in developed markets with robust fundamentals, compelling risk-adjusted returns, and assets that align with our portfolio objectives, while maintaining a strong balance sheet.”
CEO Mr William Tay:
“CLAR has continued to deliver growth in distributable income against a backdrop of economic uncertainty in 2025. We achieved strong positive rental reversions of 12.0%, reflecting the quality and relevance of our portfolio, which we have proactively curated through investment, divestment, development and asset enhancement. Importantly, we secured healthy leasing commitments for our redevelopment projects, demonstrating tenants’ confidence in our rejuvenation strategy to future-proof our properties. We will continue to pursue our portfolio rejuvenation strategy, enhance long-term income sustainability and create additional value for unitholders.”
Closing Thoughts
In my opinion, CLAR’s results was a stable one, with its financial figures up by a low-single digit percentage year-on-year for both the 2nd half, as well as for the full year ended 31 December 2025.
On the occupancy rate of its properties in the various geographical locations, apart from the United States (where the occupancy rate was at 85.5%), they were all at above 90% (91.2% in Singapore, 94.4% in Australia, and 92.0% in the United Kingdom/Europe), with a high double digit rental reversion being recorded for new and/or renewed leases in Singapore (+11.8%), the United States (+12.3%), as well as in Australia (+41.0%).
Debt profile is also maintained at a healthy level of 39.0%, with debt maturity over the next 5 years well-spread out.
At the same time, some slight negatives were noted in its distribution payout to unitholders, which inched down by a low-single digit percentage for both the 2nd half, as well as the full year ended 31 December 2025 on a year-on-year basis due to a higher unit base. This is on top of a small negative rental reversion being recorded for new and/or renewed leases in the United Kingdom in FY2025 (at -0.9%).
Other CapitaLand REITs and Business Trusts in Focus:
CapitaLand India Trust (SGX: CY6U): 4Q & FY2025 Results Review
CapitaLand Integrated Commercial Trust (SGX: C38U): 4Q & FY2025 Results Review
Related Documents:
Press Release
Financial Statements
Presentation Slides
Supplementary Information
Disclaimer: At the time of writing, I am a unitholder of CapitaLand Ascendas REIT.
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