[SINGAPORE] CapitaLand Ascendas Real Estate Investment Trust (Clar) reported a growth in portfolio rental reversions of 11 per cent in the first quarter of 2025, despite occupancy dipping, in a bourse filing on Monday (Apr 28).
Across Clar’s portfolio, all geographies saw a fall in occupancy, with a 1.3 per cent quarter-on-quarter (qoq) decline in total portfolio occupancy.
Australia saw the biggest decrease, falling 3.3 per cent qoq to 89.2 per cent. This was due to 94 Lenore Drive, a logistics property in Sydney, being vacant as well as a drop in occupancy of more than 30 percentage points at 108 Wickham Street in Brisbane. Clar’s manager is in discussions with a prospective tenant to lease the Sydney property, while commitment has been secured for part of the vacant space in the Brisbane property.
Both Singapore and the US saw portfolio occupancy fall 0.9 per cent qoq in Q1 2025. The Singapore portfolio’s occupancy decreased to 91.6 per cent in this quarter due to Telepark, a data centre, registering a decline in occupancy to 6 per cent from 99.6 per cent as at end-December 2024. This was partially offset by high occupancy rates at Techpoint and 3 Changi Business Park Vista.
The US saw occupancy decrease to 88 per cent in Q1 2025 due to Quebec, a logistics property in Kansas City, recording a fall in occupancy to 74.3 per cent from being fully occupied as at Dec 31, 2024. San Diego property 5005 & 5010 Wateridge, a business space asset, saw occupancy drop to 64.4 per cent from being full occupied as at Dec 31, 2024. However, an asset enhancement initiative will commence at the property in the second quarter of this year.
Clar still secured a higher rental reversion in Q1 2025, with Australia recording the highest at 59 per cent, followed by the US at 10.3 per cent and Singapore at 7 per cent. Rental reversions for the 2025 financial year is expected to be in the positive mid-single-digit range.
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The portfolio weighted average lease expiry remained stable at 3.8 years. The aggregate leverage inched up to 38.9 per cent as at Mar 31, 2025, from 37.7 per cent as at Dec 31, 2024. Weighted average all-in debt cost remains steady at 3.6 per cent as at Mar 31, from 3.7 per cent as at end-December.
Global growth forecasts have been revised down as downside risks dominate the outlook amid an unpredictable macroeconomic environment. Clar’s manager said that there are significant uncertainties and downside risks due to the lack of clarity over global trade policies.
“Clar’s financial position remains strong and the manager is committed to maintain a prudent capital management strategy,” it noted.
Units of Clar closed up 0.8 per cent or S$0.02 at S$2.68 on Monday.
