On April 28, CapitaLand Ascott REIT (CLAR) stated in an exchange filing that its portfolio rental income rose by 11% year-on-year in Q1 2025, despite a decline in occupancy rates.
Across CLAR’s portfolio, occupancy rates fell in all regions, with the total portfolio occupancy dropping by 1.3% quarter-on-quarter.
Australia saw the sharpest decline, with occupancy down 3.3% quarter-on-quarter to 89.2%. This was due to the vacancy of the logistics property at 94 Lenore Drive in Sydney and a more than 30% drop in occupancy at 108 Wickham Street in Brisbane. CLAR’s manager is negotiating with potential tenants for the Sydney property, while partial space at the Brisbane property has been leased.
In Q1 2025, both Singapore and the U.S. recorded a 0.9% quarter-on-quarter decline in portfolio occupancy. Singapore’s occupancy fell to 91.6%, primarily due to a drop in occupancy at the data center Telepark—from 99.6% at the end of December 2024 to just 6%. This was partially offset by high occupancy rates at Techpoint and Changi Business Park Vista 3.
In the U.S., occupancy declined to 88% in Q1 2025, driven by a drop at the Kansas City logistics property Quebec—from full occupancy on December 31, 2024, to 74.3%. Similarly, the commercial space at 5005 & 5010 Wateridge in San Diego saw occupancy fall from 100% to 64.4%. However, an asset enhancement initiative for this property is set to begin in Q2 2025.
CLAR’s rental reversion rates remained strong in Q1 2025, with Australia leading at 59%, followed by the U.S. at 10.3% and Singapore at 7%. The REIT expects positive mid-single-digit rental reversions for FY2025.
The portfolio’s weighted average lease expiry (WALE) remained stable at 3.8 years. Total leverage increased slightly from 37.7% on December 31, 2024, to 38.9% on March 31, 2025. The weighted average cost of total debt remained steady at 3.6% as of March 31, compared to 3.7% at the end of December.
Amid an unpredictable macroeconomic environment, downside risks dominate the global growth outlook, leading to downward revisions in economic forecasts. CLAR’s manager highlighted significant uncertainty and downside risks due to a lack of transparency in global trade policies.
The company noted, “CLAR’s financial position remains robust, and the manager is committed to maintaining a prudent capital management strategy.”
$CapLand Ascendas REIT(A17U.SI)$ drops 2.23% at 2:43 pm, May 8th.
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