- While operating trends are likely to face uncertainties, CapitaLand Ascendas REIT’s diversified portfolio, new economy exposure, portfolio reconstitution and strong credit profile keep us on a BUY rating.
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Positive reversion, but occupancy slips
- Acquisitions announced during the quarter will grow the portfolio by a high single-digit percentage point. Gearing was capped by an equity fund raising, while cost of debt was stable.
- Portfolio occupancy was 90.5% (4Q25: 90.9%, 1Q25: 91.5%). Same-store occupancy was lower across geographies. In Singapore, occupancy fell by 60bps on a same-store basis due to non-renewals in business parks and logistics spaces, partially offset by increases in industrial and data centres (DCs).
Mixed operating trend
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- Average portfolio reversion was +10.6%, led by business parks and logistics in Singapore. Positive rental reversion guidance remains at mid-single digit.
- Commentary by CapitaLand Ascendas REIT suggests a longer lead time for the closure of lease negotiations amid macro uncertainties. Near-term impact from the Iran war is limited as electricity contracts are substantially hedged. But a prolonged conflict may adversely impact demand.
S$1.6b of acquisitions, but gearing capped
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