CapitaLand Ascott Trust posts 31% higher H1 gross profit at S$154.4 million
Jessie Lim
CAPITALAND Ascott Trust’s (Clas) gross profit for the first half ended Jun 30 rose 31 per cent year on year to S$154.4 million.
Its results were boosted by contributions from new acquisitions and stronger operating performance as travel continued to pick up pace.
About 58 per cent of gross profit for H1 came from properties under master leases, management contracts with minimum guaranteed income, as well as rental housing and student accommodation properties.
The remaining came from sources including hotels and serviced residences under management contracts, Clas’ managers said on Thursday (Jul 27).
Revenue shot up by 30 per cent to S$346.9 million from S$267.4 million previously, driven by contributions from the 14 assets Clas acquired last year and in the second quarter of 2023, which were largely longer-stay properties.
Revenue per available unit rose 44 per cent to S$138 in H1 on robust lodging demand, with key markets such as Australia, Japan, Singapore, the UK and the US performing above pre-pandemic levels.
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Serena Teo, chief executive officer of Clas’ managers, said: “We expect continued demand for our properties as international arrivals are projected to further recover to between 80 per cent and 95 per cent of pre-pandemic levels by the end of 2023.”
She noted that Clas’ performance is expected to remain resilient despite macroeconomic uncertainties given its geographic diversification, range of lodging asset classes and different contract types.
For H1, Clas posted a S$0.0278 distribution per stapled security, up from S$0.0233 in the year-ago period. Total distribution grew 26 per cent to S$96.3 million.
As at Jun 30, 80 per cent of the stapled group’s debts are on fixed rates and the weighted average debt to maturity is 3.6 years, mitigating the impact of rising interest rates, the managers said.
Clas’ gearing stood at 38.6 per cent with an effective borrowing cost of 2.3 per cent per annum, and an interest cover of 4.3 times.
Asia-Pacific’s largest lodging trust will see five of its properties undergo asset enhancement initiatives this year to uplift their value and profitability.
Giving an update on Somerset Liang Court, an upcoming 192-unit serviced residence, Clas’ managers said the development is expected to complete in the second half of 2025.
One of Clas’ student accommodation properties in the US, Standard at Columbia, received its temporary certificate of occupancy on Jun 30. It will welcome its first batch of students in August.
Teo added: “We will continue to exercise financial discipline as we seek investment, asset enhancement and portfolio reconstitution opportunities across our lodging asset classes.”
Stapled securities of Clas closed 1.8 per cent or S$0.02 higher at S$1.11 on Thursday.
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