Brief Overview:

CapitaLand Ascendas REIT (SGX: A17U), or CLAR, is Singapore’s first and largest listed business space and industrial REIT, focusing its investments primarily in developed markets.

CLAR’s portfolio spans business space and life sciences properties, including business and science parks in Singapore, suburban areas in Australia, and prominent corporate campus environments in the United States. It also invests in industrial properties in Singapore, data centres across Singapore, the United Kingdom, and Europe, as well as logistics properties featuring single- and multi-storey buildings with vehicular ramps and/or cargo lift access. These properties are strategically located in Singapore, Australia, the United States, and the United Kingdom, with good connectivity to major transportation, water, and ground networks.

As of 31 December 2025, CLAR’s portfolio consists of 222 investment properties valued at S$18.2 billion, with 68% of its total assets under management based in Singapore, 12% in Australia, 11% in the United States, and 9% in the United Kingdom/Europe.

Notable Insights from CapitaLand Ascendas REIT’s FY2025 Annual Report:

Key Performance Highlights:

  • Gross revenue and net property income rose by 1.0% and 1.7%, reaching S$1,538.6 million and S$1,067.6 million, respectively. This increase was primarily driven by acquisitions, including 9 Tai Seng Drive (a data centre in Singapore), 5 Science Park Drive (a business space property in Singapore), and DHL Indianapolis Logistics Center (a logistics property in the United States). However, this was partly offset by the divestment of 4 properties in Australia, 6 in Singapore, 2 in the United States, and 1 in the United Kingdom between February 2024 and December 2025.
  • Distributable income to unitholders grew by 1.4% to S$678.3 million. However, distribution per unit decreased by 1.3% to 15.005 cents due to an expanded unit base following the equity fundraising exercise in June 2025, as well as the issuance of units for the payment of divestment and acquisition fees (both related to interested party transactions), and the partial payment of base management fees with units.
  • Portfolio occupancy stood at a stable level of 90.9%, with a weighted average lease expiry (WALE) of 3.7 years by gross rental income. Rental reversion was positive at +12.0% for leases renewed during the financial year, marking the third consecutive year of double-digit positive rental reversions. Rental reversions by region were as follows: Singapore +11.8%, the United States +12.3%, Australia +41.0%, and the United Kingdom/Europe -0.9%.
  • The total value of CLAR’s 222 investment properties increased by 8.6% to S$18.2 billion. On a same-store basis, the portfolio valuation rose by 2.0% to S$16.6 billion, with growth across all 3 segments: business space & life sciences, industrial and data centres, and logistics.
  • Aggregate leverage remained at a healthy 39.0% (up from 37.7% a year ago, mainly due to higher borrowings for investments). The average cost of debt decreased to 3.5% (from 3.7% last year), and 75.4% of borrowings were hedged at fixed rates (down from 82.7% a year ago).

Key Developments in FY2025:

During FY2025, CLAR completed a range of significant transactions, including acquisitions valued at S$1,523.1 million, divestments totalling S$454.0 million, redevelopments amounting to S$407.6 million, and asset enhancement works worth S$28.6 million, with notable highlights as follows:

  • January 2025: Acquired DHL Indianapolis Logistics Centre, a logistics property in the United States, for S$153.4 million. CLAR also completed an asset enhancement at Perimeter Two, a business space property in the United States, with upgrades to the main lobby and patio to enhance tenant well-being and engagement, at a cost of S$1.1 million.
  • February 2025: Completed asset enhancements at 80 Bendemeer Road, a premier industrial property in Singapore, for S$3.5 million. The work included refurbishing the main lobby and adding a self-serve pantry to improve tenant and visitor experience, as well as installing an additional service lift for improved floor accessibility.
  • March 2025: Redeveloped 1, 1A, and 1B Science Park Drive, a premium business space and life sciences property in Singapore. The project, valued at S$300.2 million, had a stabilised yield of around 6%, with leasing at 81% as of 31 December 2025.
  • June 2025: Divested Parkside, a business space property in the United States, for S$26.5 million, which was 44.8% above its valuation of S$18.3 million.
  • August 2025: Acquired 5 Science Park Drive, a premium business space property in Singapore, for S$261.0 million, and 9 Tai Seng Drive, a Tier III colocation data centre in Singapore, for S$463.6 million.
  • September 2025: Redeveloped 5 Toh Guan Road East, a modern 6-storey ramp-up logistics property in Singapore, for S$107.4 million, with a stabilised yield of about 8%. As of 31 December 2025, the facility was 65% leased. Additionally, completed an asset enhancement at Perimeter One, a business space property in the United States, for S$1.3 million, which included transforming the main lobby and revamping the outdoor patio to enhance tenant engagement.
  • October 2025: Divested 30 Tampines Industrial Ave 3, an industrial property in Singapore, for S$23.0 million (a 4.5% premium to its valuation of S$22.0 million). CLAR also completed asset enhancements at Aperia, a high-specifications industrial building in Singapore, for S$22.7 million, improving tenant and visitor experience through upgraded entrances and an extended retail street for enhanced food and beverage options.
  • November 2025: Acquired Astmoor Road, a logistics property in the United Kingdom, for S$52.5 million, a 12.7% premium to its valuation of S$46.6 million.
  • December 2025: Divested 95 Gilmore Road, a logistics property in Australia, for S$90.0 million (a 9.5% premium to its valuation of S$82.2 million), along with multiple properties in Singapore, including 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, and 19 & 21 Pandan Avenue, for S$306.0 million (a 5.8% premium to their combined valuation of S$289.3 million). Additionally, the REIT divested 8700-8770 Nimbus, a business space property in the United States, for S$8.5 million (a 10.4% premium to its valuation of S$7.7 million). CLAR also acquired 2 Pioneer Sector 1, a ramp-up logistics property, Tuas Connection, a light industrial property, and 9 Kallang Sector, a high-specifications industrial property in Singapore, for S$592.6 million.

Progress on Sustainability Agenda:

  • CLAR maintained its 4-star rating for the third consecutive year and achieved an ‘A’ rating for Public Disclosure for the sixth consecutive year in the 2025 GRESB Real Estate Assessment.
  • The REIT improved its ranking to 2nd place in the Singapore Governance and Transparency Index 2025 (within the REITs and Business Trust category), up from 3rd place the previous year.
  • CLAR was also recognised as one of ASEAN’s Top 50 Listed Entities at the ASEAN Corporate Governance Awards, marking it as one of only 8 Singapore-listed entities to earn this distinction.

Looking Ahead:

  • The REIT is currently managing 7 projects with a total value of S$730.3 million, including 3 greenfield developments: Summerville Logistics Center in the United States (expected completion in 1Q FY2026), and Manton Wood and Towcester in the United Kingdom (expected completion in 1H FY2027 and 2H FY2028, respectively). Additionally, there are 2 redevelopment projects in Singapore – 27 IBP (expected completion in 1H FY2026) and Logis Hub @ Clementi (expected completion in 1Q FY2028) – along with 2 asset enhancement initiatives: 5005 & 5010 Waterbridge in the US (expected completion in 2H FY2026) and Nexus @one-north in Singapore (expected completion in 2Q FY2026). These initiatives are set to enhance earnings resilience, improve portfolio quality, and position CLAR for sustainable long-term growth.
  • While global economic growth continues to face uncertainty due to tariffs and geopolitical tensions, the structural factors driving demand for modern industrial, logistics, data centre, and business space assets remain strong.
  • The REIT’s management remains focused on disciplined growth, targeting developed markets to strengthen the portfolio. It will also continue to explore opportunities for optimising and adding value to existing properties through strategic rejuvenation efforts.

Details of CapitaLand Ascendas REIT’s AGM:

Date: Friday, 24 April 2026
Time: 3.00pm
Venue: Marina Bay Sands Expo & Convention Centre, Level 3, Hibiscus Ballroom, 10 Bayfront Avenue, Singapore 018956

The meeting will be held in a wholly physical format, with no option for unitholders to attend virtually.

If you have any questions on CLAR’s latest annual report for FY2025, you may either raise them in-person during the meeting, or submit them in advance via email to CLAR2026@boardroomlimited.com before 5pm on Wednesday, 08 April 2026.

Closing Thoughts:

Overall, CLAR has delivered a stable performance for FY2025, with financial results showing a modest increase in the low single digits. Portfolio occupancy remained strong at just above 90%, and a solid positive double-digit rental reversion was achieved. The REIT’s debt profile, particularly its aggregate leverage, is healthy, staying under 40%, providing CLAR with ample headroom to pursue further acquisitions and growth.

However, there were a few minor setbacks, such as a slight decrease in distribution per unit due to the enlarged unit base, and a -0.9% rental reversion on leases for properties in the United Kingdom. However, as these UK properties represent a small portion of the overall portfolio (just 9% of assets under management), this is not a major concern (at least in my opinion).

Looking ahead, with contributions from newly acquired and redeveloped properties, as well as positive rental reversions from lease renewals, CLAR’s financial performance for the upcoming year is expected to remain stable.

Related Documents:

Annual Report
Independent Market Report 2025
Notice of AGM
Proxy Form
Appendix to Unitholders in Relation to: The Proposed Renewal of the Unit Buy-Back Mandate

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

Are You Worried about Not Having Enough Money for Retirement?

You're not alone. According to the OCBC Financial Wellness Index, only 62% of people in their 20s and 56% of people in their 30s are confident that they will have enough money to retire.

But there is still time to take action. One way to ensure that you have a comfortable retirement is to invest in real estate investment trusts (REITs).

In 'Building Your REIT-irement Portfolio' which I've authored, you will learn everything you need to know to build a successful REIT investment portfolio, including a list of 9 things to look at to determine whether a REIT is worthy of your investment, 1 simple method to help you maximise your returns from your REIT investment, 4 signs of 'red flags' to look out for and what you can do as a shareholder, and more!

Get Your Copy of building Your REIT-irement Portfolio Here

You can find out more about the book, and grab your copy (ebook or physical book) here...