CapitaLand Ascendas Reit posts 0.1% rise in H1 DPU to S$0.07482

[SINGAPORE] The manager of CapitaLand Ascendas Real Estate Investment Trust (Clar) on Wednesday (Aug 5) posted a distribution per unit (DPU) of S$0.07482 for the first half ended June, up 0.1 per cent from S$0.07477 in the previous corresponding period.

The DPU includes an advance distribution of S$0.0375 for the period from Jan 1 to Apr 1, which was paid on Apr 30. The remaining S$0.03732 will be paid on Sep 8, after the record date on Aug 14.

Based on the closing price of S$2.49 a unit on Jun 30, Clar’s annualised distribution yield would be about 6 per cent, said the manager.

It added that DPU remained largely stable despite an enlarged unit base arising from equity fundraisings in H1 2026 and H1 2025.

Clar’s unit base grew 8.5 per cent year on year to around 4.8 billion units following an equity fundraising in April.

Distributable income rose 8.6 per cent to S$359.4 million, from S$331.1 million in the year-ago period.

This was driven by acquisitions completed in Singapore, Europe, the US and Japan in 2025 and 2026, as well as the “resilient performance” of existing properties that “more than offset the impact” of divestments undertaken in 2025.

Revenue for H1 expanded 6.7 per cent year on year to S$805.5 million, and net property income climbed 6.2 per cent on the year to S$556.1 million.

The growth was led by acquisitions and a stronger performance from existing properties in Australia.

William Tay, CEO and executive director of Clar’s manager, said the acquisitions of 25 Loyang Crescent and 5 Tuas Avenue 5 are expected to be completed in August, and will enhance the Reit’s portfolio quality and income contribution.

Clar remains focused on Singapore, with assets under management (AUM) in the city-state rising about 30 per cent from S$10.1 billion in December 2022 to S$13.1 billion in June 2026.

Beyond the two assets due for completion in H2, Tay said at Wednesday’s earnings briefing that newer developments are also expected to begin contributing to income.

At Geneo, occupancy has risen to 81 per cent, with a further 13 per cent of space under advanced negotiations that management expects to convert into leases in the next six months.

Meanwhile, 27 International Business Park (27 IBP) is about 19 per cent committed, with another 20 per cent of space under advanced talks. Management expects occupancy to reach 50 to 60 per cent by end-2026, although Tay noted that stabilising business park assets typically takes two to three years.

The S$136 million redevelopment of 27 IBP was completed in April.

Tay said: “The leases signed so far are all new to Clar – a mix of relocation and expansion, which is encouraging, as the new specs at 27 IBP let us capture new demand. We are confident of closing what’s under negotiation.”

He also identified Acer Building as the next potential redevelopment opportunity, with works expected to commence once leasing at 27 IBP gains further traction.

Beyond that, redevelopment opportunities in Science Park are limited as the buildings there are still relatively new, he added.

Key enablers for redevelopment projects include higher plot ratios and improvements in connectivity brought about by government infrastructure investments, which can support stronger asset values and rental growth, he said.

Tay said that with Clar having completed about S$1.8 billion in investments, the focus in H2 is likely to shift towards divestments, with S$300 million to S$500 million in disposals in progress, with potential for more if market demand remains strong.

While divestment opportunities are being evaluated across all markets, Clar has noted stronger investor interest in Singapore and Europe, he added.

Following its H1 investments, Clar’s portfolio AUM rose to about S$20.1 billion as at Jun 30, with Singapore accounting for 65 per cent of the portfolio.

Portfolio occupancy stood at 89.1 per cent as at Jun 30. The Reit achieved a positive average rental reversion of 8.5 per cent on leases renewed in multi-tenant buildings in H1, and management expects rental reversions to remain in the high single-digits for the full year.

As at end-June, gearing fell to 39.7 per cent, while weighted average lease expiry by gross rental income was four years. About 9.6 per cent of Clar’s gross rental income is due for renewal in the remainder of FY2026.

Units of Clar ended Wednesday 0.8 per cent or S$0.02 higher at S$2.57, before the results release.