To The Moon

🌟🌟🌟$CapLand Ascendas REIT(A17U.SI)$  is Singapore's very first and largest listed business space and industrial REIT, listed on the SGX since November 2002.  Since then, CLAR has grown to be a global REIT with its headquarters in Singapore, focusing on Tech and Logistics properties in US, Australia, the UK including Singapore.

As at June 30 2024, its assets under management is SGD 16.9 billion.  CLAR owns a total of 229 properties in 3 segments.  They are Business Space and Life Sciences, Industrial and Data Centres, and Logistics.

CLAR has a wide tenant base of more than 1, 780 international and local Singapore companies.  These tenants come from a diverse range of industries and activities and include data centres, IT, engineering, logistics and supply chain management, biomedical sciences, financial services (backroom office support), electronics, government and other manufacturing and service industries.

CLAR's major tenants include $Singtel(Z74.SI)$ 

DSO National Laboratories, $Sea Ltd(SE)$  $DBS Group Holdings(D05.SI)$  Citibank and $WESFARMERS LTD(WES.AU)$. 

CLAR has an issuer rating of 'A3' by Moody's Investors Services.  CLAR is one of the Top 10 Holdings in the STI ETF.  CLAR also has a strong sponsor in Capitaland Investment (CLI).  CLI is a global real estate manager with SGD 134 billion of Assets Under Management as at March 31 2024.   Temasek Holdings is a top shareholder in CLAR with 17.3% investment. 

In August, CLAR 's 1st half revenue and net property income grew 7.2% and 3.9% year over year respectively.  This is due to acquisitions and contributions from newly completed properties. 

CLAR' s portfolio occupancy was 93.1%.  Management said that industrial and data centres in its portfolio are the new growth centres while logistics is also entering a high but mature growth phase. 

CLAR declared a Distribution per unit of 7.52 cents in its 1st Half 2024 earnings. While this was lower by 2.5% year over year, it was higher by 1.1% compared to previous half year's distribution per unit. 

CLAR's gearing was stable at 37.8% which was well below the 50% maximum gearing limit set by the Singapore authorities. 

I have invested in CLAR since 2021 and held it till now.  In that time, CLAR like other SReits was affected by the  high interest rates set by the Feds, resulting in higher borrowing  costs. 

However there are  green shoots of recovery recently in the SReit sector as the Feds have indicated a interest rate cut in September. 

Performance wise CLAR is up 7.7% in the past month but still down by 2.3% year todate.  CLAR has risen 2.8% in 2023.

Analysts are bullish on CLAR with a Buy rating, average Target price of SGD 3.25, an upside potential of 12%.   With continued demand and limited supply, analysts expect positive rental reversion for CLAR's industrial and logistics properties, underpinned by its quality and strategic locations. 

I believe that CLAR is undervalued and has lots of exponential growth ahead.    I also like that CLAR has a strong sponsor - Capitaland Invest and a well diversified portfolio of properties with a diverse tenant mix.    CLAR also has a lower leverage ratio compared to its large Cap peers. 

At its last closing price of SGD 2.91, Capitaland Ascendas REIT offers great value for money for what it stands for - the largest industrial SReit, with the backing of a strong sponsor and a solid portfolio of properties that will continue to churn great  rental income well into the future. 

Go Long Go Strong Go Capitaland Ascendas REIT! 🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰

For those who are new to investing in Singapore, Tiger Brokers is having a special National Day Promotion with zero commission till October 31 2024 on all Singapore stocks, SReits plus a chance to win fabulous prizes such as a Free Staycation at 5 star Fullerton Hotel, Gift vouchers and other exciting prizes. 

@Daily_Discussion @Tiger_SG   @TigerStars  @Tiger_comments  @MillionaireTiger  @CaptainTiger