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CapitaLand Ascendas REIT (SG:A17U)
SGX:A17U
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CapitaLand Ascendas REIT
(SGX:A17U)
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Rating:67Neutral
Price Target:
S$3.00
▲(15.38% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by solid fundamentals (strong margins and steady revenue) but held back by 2025 cash flow deterioration and a recent uptick in leverage. Technical indicators point to weaker near-term momentum, while valuation is supported by a strong dividend yield with a moderate P/E.
Positive Factors
Strong Cash Flow Management
Strong cash flow management enhances financial flexibility, allowing for strategic investments and debt management, supporting long-term growth.
High Portfolio Occupancy
High occupancy rates indicate strong demand for properties, ensuring stable rental income and supporting long-term revenue stability.
Sustainability Initiatives
Commitment to sustainability through green financing aligns with global trends, enhancing brand reputation and attracting ESG-focused investors.
Negative Factors
Revenue Decline
Significant revenue decline can impact profitability and limit reinvestment capacity, posing a risk to long-term financial health.
U.S. Market Challenges
Challenges in the U.S. market, such as declining occupancy, can affect overall portfolio performance and limit growth opportunities.
Distribution Income Decline
Declining distribution income may affect investor returns and reduce attractiveness to income-focused investors, impacting capital inflows.
CapitaLand Ascendas REIT (A17U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$11.94B
Dividend Yield5.43%
Average Volume (3M)12.25M
Price to Earnings (P/E)16.4
Beta (1Y)0.58
Revenue Growth2.35%
EPS Growth365.31%
CountrySG
Employees67
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.10
Shares Outstanding4,611,952,000
10 Day Avg. Volume9,240,961
30 Day Avg. Volume12,247,945
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.21
Price to Sales (P/S)8.14
P/FCF Ratio18.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$3.37Price Target Upside29.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.16
Revenue Forecast (FY)S$1.62B
CapitaLand Ascendas REIT Business Overview & Revenue Model
Company DescriptionCapitaLand Ascendas REIT engages in the investment in a diverse portfolio of properties and property related assets. It operates through the following segments: Business and Science Park Properties and Suburban Offices; Integrated Development, Amenities, and Retail Properties; High-Specifications Industrial Properties and Data Centres; Light Industrial Properties and Flatted Factories; and Logistics and Distribution Centres. The company was founded on October 9, 2002 and is headquartered in Singapore.
How the Company Makes MoneyCapitaLand Ascendas REIT generates revenue primarily through rental income from its extensive portfolio of properties. The trust leases its properties to a variety of tenants, including multinational corporations, logistics firms, and technology companies, which provides a diverse revenue base. In addition to rental income, the REIT may also earn income from property management services and ancillary services related to its properties. Significant partnerships with key tenants and strategic acquisitions of high-demand properties further enhance its revenue-generating capacity. The REIT's focus on high-growth sectors such as logistics and data centers positions it well to benefit from increasing demand in these areas, contributing to its overall earnings.
CapitaLand Ascendas REIT Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive aspects such as high occupancy, successful acquisitions, and positive rental reversion across geographies. However, there were challenges like revenue and net property income decline, distribution income decrease, and occupancy issues in the U.S. office market.Q2-2025 Updates
Positive Updates
Portfolio Occupancy and Rental Reversion
Portfolio occupancy remained high at 91.8%, with a high rental reversion of 9.5% for leases renewed in the first half.
Healthy Gearing and Debt Management
Gearing is healthy at 37.4%, with a stable cost of debt at 3.7%. The debt expiry profile is well spread out, with about $900 million due for refinancing per annum.
Acquisition and Redevelopment Success
The acquisition of DHL Logistics Center in the U.S. and the redevelopment of 1 Science Park Drive were completed, with a total development cost of about $884 million. Plans are set to add another $725 million of interim producing assets in Singapore.
Positive Rental Reversion Across Geographies
The total portfolio achieved a positive rental reversion of 8%, with Singapore at 7.8%, U.S. at 10.9%, and Australia at 3.5%.
Successful Divestment
Divested Parkside business-based property in the U.S. at a 45% premium to market valuation.
Negative Updates
Revenue and Net Property Income Decline
Gross revenue in the first half decreased by about 2% to $755 million, and NPI declined slightly by 0.9% to $1 billion due to lower operating expenses.
Distribution Income and DPU Decline
Distribution income decreased 2% to $231.1 million due to higher interest expense, and DPU declined slightly.
U.S. Occupancy Challenges
Occupancy in the U.S. declined 0.7% to 87.3% due to an expiry of a lease in a logistics property in Kansas City.
Potential Downside in U.S. Office Market
The U.S. office market continues to face challenges, with potential downside expected in the second half.
Company Guidance
During the call, several key metrics were highlighted, providing comprehensive guidance on the company's financial and operational performance. Portfolio occupancy remained high at 91.8%, with a positive rental reversion of 9.5% for leases renewed in the first half. Gearing was maintained at a healthy 37.4%, and the cost of debt stayed stable at 3.7%. Gross revenue in the first half decreased by 2% to $755 million, mainly due to property divestments in Singapore, Australia, and the U.S., though was partly offset by acquiring a DHL Logistics property in the U.S. Net property income (NPI) dipped slightly by 0.9% to $1 billion, while distribution income was stable at $331.1 million. Distribution per unit (DPU) slightly decreased to $7.477 due to an increase in the number of units. The company completed $1.2 billion in acquisitions, including the DHL Logistics Center in Indianapolis, and completed redevelopment projects with a total development cost of about $884 million. The portfolio's occupancy rates across different geographies varied, with Singapore at 91.2%, the U.S. at 87.3%, Australia increasing to 93.1%, and the U.K. and Europe stable at 98.9%. The company expects to maintain its cost of debt around 3.7% and plans to divest $300 million to $400 million worth of assets within the year.CapitaLand Ascendas REIT Financial Statement Overview
Summary
Strong profitability and steady revenue growth support the score, but it is tempered by rising leverage in 2025 and weaker 2025 cash flow conversion (operating cash flow coverage ~0.36 and free cash flow down ~32% YoY).Income Statement
Revenue shows steady expansion across 2020–2025, with growth moderating to ~4.4% in 2025 after a near-flat 2024. Profitability is a clear strength: 2024–2025 net margins remain very high (~49–50%) with strong operating margins. The key weakness is earnings volatility—2023 net income fell sharply (margin ~11%) before rebounding in 2024–2025, indicating sensitivity to non-operating items or one-offs despite stable revenue.78
Positive
Balance Sheet
The balance sheet is reasonably supported by equity (debt-to-equity generally ~0.63–0.84), which is typical for a REIT structure, but leverage has trended higher in 2025 versus 2024. Returns on equity are steady in the ~7–10% range in most years, but 2023 was a notable weak spot (very low return on equity) consistent with the earnings dip. Overall asset and equity levels appear stable, but the rising debt load is the main risk factor in the recent period.70
Positive
Cash Flow
Cash generation is generally solid, with operating cash flow consistently positive and free cash flow often tracking net income well (notably 2023–2024 where free cash flow matched net income). However, cash flow conversion weakened in 2025: operating cash flow coverage fell to ~0.36 and free cash flow declined ~32% year over year, suggesting higher cash costs, working-capital drag, or elevated recurring investment needs. This introduces more variability versus the relatively stable profit profile shown in 2024–2025.62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.57B | 1.52B | 1.48B | 1.35B | 1.23B |
| Gross Profit | 996.41M | 1.05B | 936.08M | 843.50M | 835.98M |
| EBITDA | 880.74M | 1.01B | 920.38M | 967.33M | 890.83M |
| Net Income | 779.72M | 764.11M | 168.27M | 760.39M | 957.04M |
Balance Sheet | |||||
| Total Assets | 19.85B | 18.27B | 18.27B | 17.88B | 17.73B |
| Cash, Cash Equivalents and Short-Term Investments | 209.44M | 167.74M | 221.58M | 217.02M | 368.55M |
| Total Debt | 8.90B | 7.15B | 7.17B | 7.09B | 6.99B |
| Total Liabilities | 9.30B | 7.96B | 8.05B | 7.61B | 7.45B |
| Stockholders Equity | 10.55B | 10.31B | 10.22B | 9.97B | 9.98B |
Cash Flow | |||||
| Free Cash Flow | 696.64M | 947.69M | 956.28M | 728.26M | 483.17M |
| Operating Cash Flow | 859.17M | 947.69M | 956.28M | 854.11M | 597.61M |
| Investing Cash Flow | -1.44B | -61.65M | -925.71M | -376.82M | -1.92B |
| Financing Cash Flow | 626.52M | -944.88M | -28.18M | -615.99M | 1.28B |
CapitaLand Ascendas REIT Technical Analysis
Negative
2.60
Price Trends
2.75
Negative
2.74
Negative
2.69
Negative
Market Momentum
-0.03
Positive
24.38
Positive
30.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A17U, the sentiment is Negative. The current price of 2.6 is below the 20-day moving average (MA) of 2.71, below the 50-day MA of 2.75, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 24.38 is Positive, neither overbought nor oversold. The STOCH value of 30.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:A17U.
CapitaLand Ascendas REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | S$3.66B | 17.46 | 4.77% | 6.04% | 2.01% | 38.17% | |
70 Outperform | $3.58B | ― | 5.16% | 6.46% | 1.47% | -7.50% | |
67 Neutral | S$11.94B | 16.40 | 6.96% | 5.43% | 2.35% | 365.31% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | S$5.77B | 16.12 | 6.70% | 6.51% | -1.96% | 175.59% | |
54 Neutral | S$6.34B | 41.02 | 3.18% | 5.83% | -1.81% | -18.43% | |
46 Neutral | S$1.90B | 68.78 | -4.88% | 7.91% | 10.51% | -40.93% |
* Real Estate Sector Average
SG:A17U
CapitaLand Ascendas REIT
2.59
0.18
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CapitaLand Ascendas REIT Corporate Events
CapitaLand Ascendas REIT Refreshes Board and Audit Committee Membership
Jan 23, 2026
CapitaLand Ascendas REIT Management Limited has announced changes to the board and its committees, following the resignation of Non-Executive Independent Director and Audit and Risk Committee member Ms Ong Lee Keang Maureen due to health reasons. The board has appointed Ms Choo Oi Yee as a Non-Executive Independent Director and member of the Audit and Risk Committee, with the board deeming her independent under SGX listing rules, and she will also serve on the Investment Committee. With these changes, the board and its key committees remain fully staffed, preserving the REIT’s governance structure and oversight functions despite the unexpected departure of a long-serving independent director.
The most recent analyst rating on (SG:A17U) stock is a Buy with a S$3.20 price target. To see the full list of analyst forecasts on CapitaLand Ascendas REIT stock, see the SG:A17U Stock Forecast page.
CapitaLand Ascendas REIT Strengthens Board with New Non-Executive Director Appointment
Jan 15, 2026
CapitaLand Ascendas REIT has announced a board refresh, appointing Mr Tham Wei Hsing, Paul as a Non-Executive Non-Independent Director and member of its Investment Committee with effect from 16 January 2026. Following this change, the trust has updated the composition of its Board of Directors and key committees, including the Audit and Risk Committee and Investment Committee, underscoring ongoing efforts to maintain a robust governance structure and strategic oversight for its investment activities.
The most recent analyst rating on (SG:A17U) stock is a Buy with a S$3.00 price target. To see the full list of analyst forecasts on CapitaLand Ascendas REIT stock, see the SG:A17U Stock Forecast page.
CapitaLand Ascendas REIT Issues Units for Management Fee Payment
Dec 15, 2025
CapitaLand Ascendas REIT has issued 3,225,026 units to pay 20% of its base management fee for the period from June to November 2025. Of these units, 680,000 were issued to its manager, CLARML, and 2,545,026 were transferred to CLI RE Fund Investments Pte. Ltd., a related entity. This strategic move allows CLARML to manage its fee structure by opting for a combination of cash and units, potentially impacting its financial operations and stakeholder interests.
The most recent analyst rating on (SG:A17U) stock is a Hold with a S$3.00 price target. To see the full list of analyst forecasts on CapitaLand Ascendas REIT stock, see the SG:A17U Stock Forecast page.
CapitaLand Ascendas REIT Updates Board and Committee Composition
Dec 2, 2025
CapitaLand Ascendas REIT has announced the retirement of Mr. Vinamra Srivastava from his roles as Non-Executive Non-Independent Director and Member of the Investment Committee, effective December 3, 2025. This change is part of an update to the composition of the Board and Board Committees, which will see Dr. Beh Swan Gin as Chairman of the Board and Mr. Manohar Khiatani as Chairman of the Investment Committee. These updates are expected to influence the strategic direction and governance of the REIT, potentially impacting its operational focus and stakeholder engagement.
The most recent analyst rating on (SG:A17U) stock is a Buy with a S$3.20 price target. To see the full list of analyst forecasts on CapitaLand Ascendas REIT stock, see the SG:A17U Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.