This property, just 15 minutes’ drive to Changi Airport, will be leased back to Toll Offshore Petroleum Services under a triple net lease with WALE of 13.4 years and built-in annual rent escalation of 2.5%. This property has a current plot ratio of 0.52, significantly below the maximum allowed of 1.0, suggesting redevelopment potential of up to 1.6 million sq ft.
Next, CLAR is investing $245 million for a 50% interest in Ascent, which will give CLAR a bigger exposure to the Singapore Science Park precinct, adding tenants the likes of Johnson & Johnson, Dyson and Merck.
Last but not least, CLAR is taking a 49% interest in a 40.5MW Tier III hyperscale data centre in Greater Osaka for $621 million. This property is fully leased to an investment-grade hyperscaler with WALE of 14.2 years and built-in annual rent escalation of 1%. The IT capacity of the Osaka data centre could also be expanded by 5.4MW or 13% to 45.9MW.
These acquisitions will nudge CLAR's aggregate leverage slightly higher by 0.7ppt to 39.7%. These three properties, taken to together with six earlier additions, will result in total DPU accretion of 4.1%.
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In its 1QFY2026 business update, CLAR has reported portfolio occupancy of 90.5% as of March, down 0.4ppt q-o-q. However, CLAR enjoyed higher rental reversions.
To fund the latest acquisitions, CLAR has issued 249.4 million new units at S$2.406 each and also issued 129.1 million new units via a preferential offering at $2.35.
According to Koh, citing the management, CLAR plans to recycle assets in Singapore and reposition toward technology, logistics and biomedical science. It will pursue redevelopments and AEIs in Singapore.
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Logistics properties and data centres in UK/Europe provide stable contributions due to a long WALE of 5.2 years.
Demand for logistics properties in Australia has softened with completions in recent years giving tenants more choices, leading to extended decision timelines. CLAR intends to expand its logistics presence in the US. Occupancy for business parks in the US could slip lower due to the entrenched work-from-home culture.
For Koh, possible share price catalysts for CLAR includes resilient growth across the business parks, hi-tech buildings, life sciences, logistics and data centre segments, as well as contributions from development projects, redevelopment projects and AEIs.
CapitaLand Ascendas REIT units traded at $2.52 as at 4.32 pm - holding steady for the day but down 11.31% year to date.
