CapitaLand Ascott Trust posts 59% higher Q1 gross profit
CAPITALAND Ascott Trust ’s (Clas) gross profit for the first quarter ended March was up 59 per cent year on year, due to stronger operating performance and contributions from new properties.
About 59 per cent of the quarter’s gross profit comprised stable income – which is derived from master leases and management contracts with minimum guaranteed income, as well as longer-stay properties.
Some 41 per cent of gross profit contributions were from management contracts of serviced residences and hotels, said its managers on Wednesday (Apr 26).
Revenue per available unit (RevPAU) rose 90 per cent to S$127 on higher occupancies and room rates, as continued travel recovery drove demand for accommodation.
Its managers said that among Clas’ key markets, Australia, Japan, Singapore and the US were performing at pre-Covid levels or above.
This was particularly so for Japan, following its reopening to independent leisure travellers in October 2022. RevPAU in this market rose 351 per cent to 105 per cent of same-store pre-Covid levels, notwithstanding Somerset Azabu East Tokyo which was divested in December 2020.
As at Mar 31, 2023, the stapled group’s net asset value per stapled security stood at S$1.13.
With 53 per cent of total assets in foreign currencies hedged, it registered a 0.1 per cent loss in foreign exchange after hedges on gross profit.
Clas’ gearing stood at 38.7 per cent with an average interest rate of 2.3 per cent per annum, and an interest cover of 4.4 times.
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The weighted average debt to maturity was 3.9 years.
Its managers said Clas is “well-poised to ride the travel upswing while staying resilient against downside risks”, with demand from both international and domestic segments remaining strong.
They also noted that Clas’ revenue growth has outpaced the increase in operating costs, with healthy corporate travel and business activity despite some industries facing cost pressures.
Stapled securities of Clas closed on Tuesday unchanged at S$1.07.
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