CapitaLand Ascendas REIT First Take: Stable DPU with increase in rental reversion guidance

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

05 August 2026

CapitaLand Ascendas REIT

First Take: Stable DPU with increase in rental reversion

guidance

Our First Take: 1H26 DPU rose 0.1% YoY, to 7.482 Scts (-0.6% HoH), and was

in line with JPMe, but marginally below Bloomberg consensus, at 50%/49% of

JPMe/the Street for FY26, despite the 8.5% higher unit base. Management raised

FY26 rental reversion guidance from mid-single-digits to high single digits and

flagged strong reversions (we estimate a double-digit increase) at 5 Science Park

in Nov-26. Portfolio occupancy slipped 1.4pts QoQ, to 89.1%, but was stable on

an underlying basis excluding newly completed buildings, at 90.3%.

Overweight

CAPD.SI, CLAR SP

Price (05 Aug 26):S$2.57

Price Target (Jun-27):S$2.85

Singapore/ASEAN Property and

REITs

Mervin Song, CFA AC

Key Positives

1H26 reversions of 8.5% were underpinned by a 10.6% uplift in 1Q26 and a 5.2%

increase in 2Q26 (Singapore: +5.0%, US: +8.7%, Australia: +8.2%). On growth,

management expects the two remaining Singapore acquisitions (c.S$638m) to be

completed within the month, supporting 2H income. Genio reached 81%

occupancy, with another 13% under advanced negotiation, while 5 Toh Guan Road

East is approaching full occupancy. Leverage improved to 39.7% from 42.0% QoQ

following EFR and debt repayment, and management reiterated a cost of debt

outlook at around 3.5%.

(65) 6882-7829

Terence M Khi

(65) 6882-1518

J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

Key Negatives/Question Marks

Overall portfolio occupancy declined from 90.5% in March to 89.1%, due mainly

to the completion of 27 IBP (19% leased), the vacant Summerville Logistics Center

in the US and a 1.9pts QoQ decline in the Australian portfolio. Management targets

50-60% occupancy at 27 IBP by year-end, but expects full stabilization to take

around three years. Summerville may require 9-12 months to stabilize and could

be subdivided to address smaller-unit demand. The Thomas Holt Drive property

in Australia, which saw higher vacancy, has since seen 60% of vacated space

backfilled.…