CapitaLand Ascendas REIT (CLAR) posted distributable income of S$359.4 million for the six months ended Jun 30 2026, up 8.6 year-on-year, supported by contributions from assets acquired in Singapore, Europe, the United States and Japan that more than offset income lost from divestments in 2025.
Gross revenue grew 6.7 % YoY to S$805.5 million, while distribution per unit (DPU) was broadly unchanged at 7.482 Singapore cents. The interim payout comprises an advanced distribution of 3.750 cents paid on Apr 30 2026 and a remaining 3.732 cents to be distributed on Sep 8 2026 to unitholders on record as of Aug 14 2026. Based on the Jun 30 closing price of S$2.49, the annualised yield stands at about 6.0 %.
Performance was buoyed by recently completed purchases and stronger rental income from the trust’s Australian portfolio. CLAR achieved a positive average rental reversion of 8.5 % on leases renewed in multi-tenant buildings during the period. Portfolio occupancy was 89.1 %, rising to 90.3 % when excluding two newly completed properties—27 International Business Park in Singapore and Summerville Logistics Center in the US—that are in their initial leasing phase.
By asset class, Business Space & Life Sciences accounted for 44 % of the S$20.1 billion portfolio value, Industrial & Data Centres made up 32 % and Logistics 24 %. Geographically, Singapore remained the largest market at 65 % of assets under management, followed by Australia (12 %), the US (11 %), the UK/Europe (9 %) and Japan (3 %).
The trust continued to recycle capital, signing S$1.1 billion of accretive acquisitions in 1H 2026 at initial net property income yields between 4.3 % and 7.4 % and announcing a further S$0.6 billion of purchases scheduled for completion in 2H 2026. In July it agreed to sell Kim Chuan Telecommunications Complex in Singapore for S$200.4 million, 32 % above valuation, doubling its original purchase price.
Funding initiatives included a S$900 million equity fund raising that reduced aggregate leverage to 39.7 % from 42.0 % as at Mar 31 2026. Fixed-rate borrowings represented 70.1 % of total debt and the weighted average cost of borrowing remained stable at 3.5 %.
Chief executive and executive director William Tay said the half-year results reflected disciplined portfolio rejuvenation and noted that the enlarged equity base has strengthened the balance sheet while preserving DPU. He added that two more Singapore acquisitions are expected to close in 2H 2026 and emphasised that the divestment of Kim Chuan Telecommunications Complex demonstrates the manager’s ability to unlock value through capital recycling. Tay expects rental reversions for full-year 2026 to stay in the high single-digit range and said CLAR’s diversified, largely green-certified portfolio and ample debt headroom position the REIT to deliver stable, sustainable returns to unitholders.