William Tay Wee Leong Chief Executive Officer Executive Non-Independent Director Dr Beh Swan Gin Chairman Non-Executive Independent Director Dear Unitholders, CapitaLand Ascendas REIT (CLAR) delivered growth in distributable income for FY 2025 against a backdrop of continued economic uncertainty. The resilient performance was underpinned by our disciplined portfolio rejuvenation strategy, focus on high quality assets in developed markets and proactive management of operating and interest expenses, while consolidating CLAR’s position as a global REIT anchored in Singapore. FY 2025 Performance Highlights Gross revenue rose by 1.0% year-on-year (YoY) to S$1.54 billion for FY 2025. The higher revenue was mainly driven by acquisitions completed in FY 2025 which more than made up for the loss of revenue from divestments in FY 2024 and FY 2025. Supported by lower property operating expenses, net property income (NPI) was higher at 1.7% YoY to reach S$1.07 billion. Consequently, distributable income grew by 1.4% YoY to S$678.3 million which translated to a distribution per unit of 15.005 Singapore cents. The portfolio continued to demonstrate stable operating fundamentals. The portfolio occupancy rate was 90.9% as at 31 December 2025 and we achieved a high average positive reversion of 12.0% for leases renewed during the year. This is CLAR’s third consecutive year of doubledigit reversions which reflect sustained demand for our well-curated portfolio of quality business space and industrial assets. As at the end of FY 2025, gearing remained healthy at 39.0% and well within regulatory limits. Despite the continued high-interest rate environment, the average cost of debt for CLAR’s total borrowings, which comprises various currencies, declined to 3.5% from 3.7% a year ago. The robust financial metrics stem from our proactive refinancing and capital raising strategies to preserve our strong balance sheet and prudent capital structure. Maintaining financial flexibility and liquidity remains a priority for CLAR, enabling us to seize accretive investment opportunities when they arise. Read more about CLAR’s financial and operational performance in The Manager’s Review of FY 2025 on pages 18 to 37. A Resilient and Future-ready Portfolio Our portfolio rejuvenation strategy remains central to our intent to prudently grow and enhance the value of our diversified portfolio. This strategy encompasses accretive acquisitions, disciplined divestments as well as deliberate investments in the redevelopment of existing assets and greenfield developments. In FY 2025, we successfully completed approximately S$1.5 billion of accretive acquisitions, mainly in Singapore. These six properties in Singapore and the US are welloccupied by established tenants and are expected to generate initial NPI yields of 6.1% to 7.6%. We also accelerated the pace of capital recycling, divesting nine properties for a total sale price of S$506.5 million Chairman & CEO Message CapitaLand Ascendas REIT 8
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