On 27 April 2026, CapitaLand Ascendas Real Estate Investment Trust (“CLAR”) released their first quarter business update for FY2026. A key focal point this quarter is the temporary expansion in aggregate leverage, which rose to 42.0%. However, management expects this metric to normalize at approximately 37.3% following the settlement of the recent equity fund raising (“EFR”). The capital raised was allocated to both reduce existing debt and finance new asset purchases. The announcement of these acquisitions mark CLAR’s initial expansion into the Japanese data centre market. This move provides geographic diversification for CLAR’s portfolio, aligning closely with current allocation strategies seen among global institutional managers. However, this entry comes at a time when the Japanese data centre space is showing signs of increasing saturation, which could heighten competition and compress future yields. Additionally, the prospect of the Bank of Japan raising interest rates introduces new risks surrounding local borrowing costs and broader asset valuations....