CapitaLand Ascendas Reit grows portfolio to $18.2 bil, completes two redevelopments in 2025

Fiona Lam

/ EdgeProp Singapore

February 5, 2026 9:01 PM SGT

fiona.lam@edgeprop.sg

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In 2025, CapitaLand Ascendas Reit strengthened its portfolio with six new properties in the US and Singapore, including 5 Science Park Drive (pictured). (Photo: CapitaLand Ascendas Reit)

CapitaLand Ascendas Reit (CLAR) wrapped up an active 2025 with about $1.5 billion in accretive acquisitions and the completion of two significant redevelopment projects, as the real estate investment trust’s manager continues its portfolio rejuvenation strategy.

That has grown its global portfolio to 222 investment properties — across Singapore, Australia, the US, the UK, and Europe — totalling $18.2 billion as at the end of 2025, increasing by 33% from $13.7 billion five years ago, the Reit manager said in a Feb 5 release announcing its financial results for 2025.

Seven projects are ongoing: three developments, two redevelopments and two asset enhancement initiatives (AEI), with a total investment of $730.3 million. These are scheduled for completion between the first quarter of 2026 and the second half of 2028.

In 2025, the team acquired $1.5 billion of high-quality assets, largely in Singapore, which remains the cornerstone of the Reit’s portfolio. The purchased assets, with initial net property income (NPI) yields of 6.1% to 7.6% pre-transaction costs, are occupied by established tenants.

Two redevelopment projects in Singapore, 1 Science Park Drive and 5 Toh Guan Road East, were completed during the year at a total cost of about $407.6 million. The Science Park property was about 81% leased as of year-end while the Toh Guan site was 65% leased. They are expected to contribute income in 2026, with stabilised yields on cost estimated at 6% and 8%, respectively.

Portfolio occupancy stood at 90.9% with a weighted average lease expiry of 3.7 years as at the end of 2025. The Reit achieved strong rental reversions of 12% for renewed leases in multi-tenant buildings, as new demand came from the logistics and supply chain management, electronics, and IT and data centre sectors.

William Tay, CEO and executive director of the Reit manager, said the team will continue to pursue its portfolio rejuvenation strategy, enhance long-term income sustainability and create additional value for unitholders.

On the divestment front, the Reit offloaded nine properties in Singapore, Australia, the US and the UK for S$506.5 million — a 9% premium to their aggregate market valuation and 14% above the original purchase price. This capital recycling aligns with the manager’s strategy to maintain financial flexibility and liquidity for future acquisitions.

Financially, CLAR reported distributable income of S$678.3 million for the year, up 1.4% y-o-y, driven by acquisitions in Singapore and the US, as well as prudent cost management, partly offset by divestments completed in 2024 and 2025. Distribution per unit came in at 15.005 cents, translating to a 5.3% distribution yield based on the counter’s closing price of $2.83 per unit on Dec 31, 2025.