CapitaLand Ascendas REIT Reveals S$1.3 Billion of Acquisitions and Higher Gearing in 3Q 2025 Update

CapitaLand Ascendas REIT announced its 3Q 2025 business update, highlighting completed and ongoing investments, divestments and funding activities.

The trust completed the purchases of 5 Science Park Drive for 261.0 million Singapore dollars and 9 Tai Seng Drive for 463.6 million Singapore dollars in Aug, 06 2025 and Aug, 11 2025 respectively. It also agreed to acquire 2 Pioneer Sector 1, Tuas Connection and 9 Kallang Sector for a combined 592.6 million Singapore dollars, bringing total announced acquisitions to about 1.3 billion Singapore dollars at initial net property yields of roughly 6% to 7%.

On the development front, the REIT finished redeveloping 5 Toh Guan Road East on Sep, 18 2025 for 107.4 million Singapore dollars, boosting gross floor area by 71%. Seven additional projects under construction or refurbishment will require 751.0 million Singapore dollars in capital.

Asset recycling continued with completed and pending divestments amounting to 471.5 million Singapore dollars, or about 7% above latest valuations and roughly 17% over original purchase prices.

To refinance existing borrowings, the REIT raised 1.0 billion Singapore dollars through a 300 million Singapore dollars perpetual securities issue at 3.18% and 700 million Singapore dollars of seven-year green notes at 2.343%. Aggregate leverage stood at 39.8% as of Sep, 30 2025, while the weighted average all-in debt cost was 3.6 %.

Operationally, portfolio occupancy was 91.3%, down slightly from 91.8% three months earlier, and the quarter’s rental reversions averaged a positive 7.6%. The portfolio’s weighted average lease expiry remained stable at 3.6 years.

The manager reiterated that full-year 2025 rental reversions are expected to be in the low double-digit range and that the REIT will continue recycling capital into higher-yielding assets across its multi-asset, multi-geography portfolio.