CapitaLand Ascendas Reit rental reversion rises to 9.9 per cent
Occupancy improved from the previous quarter but remained below its year-earlier level, as the trust completed two Singapore acquisitions.
CapitaLand Ascendas Real Estate Investment Trust posted 9.9 per cent rental reversion in Q3 2026, alongside a quarterly improvement in portfolio occupancy to 90.1 per cent at Sep 30. Its business update also detailed S$638.1 million of completed acquisitions in Singapore.
Rental reversion increased from Q2’s 5.2 per cent and the year-earlier 7.6 per cent. The January-to-September figure was 9 per cent, with the manager forecasting a positive result in the high single digits for the full year. Portfolio occupancy compared with 89.1 per cent in Q2 and 91.3 per cent a year earlier.
Singapore occupancy reached 90.9 per cent, against 90.1 per cent in Q2. The manager said fully occupied additions to the portfolio and improved logistics occupancy were the main reasons. US occupancy also advanced, reaching 82.3 per cent from 80.9 per cent, while Australia held at 91.1 per cent.
The Singapore purchases comprised 5 Tuas Avenue 5 for S$133.9 million and 25 Loyang Crescent for S$504.2 million. Both have full occupancy and contractual yearly rent increases. Including a US logistics asset and an interest in a Japanese data centre, acquisitions totalled about S$1.8 billion during January to September.
The trust intends to sell Kim Chuan Telecommunications Complex, 17 Changi Business Park Central 1 and 9 Serangoon North Avenue 5 for S$281.7 million, with completion expected in Q4 2026. That price exceeds the properties’ combined independent market valuation by about 25 per cent.
Estimated net proceeds are S$255 million. The manager said applying the entire amount to debt repayment would lower aggregate leverage to about 41 per cent. Leverage reached 41.8 per cent at Sep 30 from 39.7 per cent at end-June, chiefly because acquisitions required additional borrowing.
