CapitaLand Ascott Trust Q1 distribution income ‘relatively stable’; RevPAU up 1% at S$137

[SINGAPORE] The manager of CapitaLand Ascott Trust (Clas) on Monday (Apr 27) announced that its distribution income remained “relatively stable” for its first quarter ended March.

This is because interest savings from lower interest rates as well as the distribution of past divestment gains mitigated the impact of closures for renovations at The Cavendish London and The Madison Hotel Hamburg.

Excluding The Cavendish London as well as acquisitions and divestments in 2025, Q1’s actual portfolio revenue per available unit (RevPAU) rose 1 per cent year on year to S$137 across markets, on a 77 per cent occupancy rate.

This was led by RevPAU improvements for the Singapore and Australia markets on an actual basis, while the Japan, UK and USA markets registered declines.

The Australia market, which represents 10 per cent of Clas’ total assets, posted a 7 per cent year-on-year increase in RevPAU to A$188 (S$172) from A$175 previously, on an actual basis.

The improvement came on the back of higher average daily rates driven by increased demand due to events, such as Ashes cricket matches and Ed Sheeran concerts. The manager noted that forward bookings for Q2 “remain healthy”.

For the Singapore portfolio, which makes up 19 per cent of total assets, RevPAU for properties rose 2 per cent on the year to S$187 on an actual basis from S$183 previously, driven by higher occupancy and stronger demand during the biennial Singapore Airshow.

Revenue from lyf Funan Singapore rose on the year amid higher variable lease income, the manager said.

Performance of Clas’ Singapore properties are expected to remain “well-supported” in Q2 2026, underpinned by long stays, barring a material slowdown in booking pace, it added.

SEE ALSO

Ascott shuts Newton training centre ahead of lease expiry, lays off 6 staff

The stapled group’s Q1 profit experienced a “negative net impact” from acquisitions, divestments and other ongoing asset enhancement initiatives, the manager said.

Interest savings from the repayment of higher-interest debt in Q2, using the proceeds from the 25 billion yen (S$222.7 million) divestment of Citadines Central Shinjuku Tokyo divestment announced in July 2025, are expected to mitigate the income lost through divestments and ongoing asset enhancement initiatives, the manager said.

In February 2026, Clas acquired three Japan rental housing properties located in Southern Kanagawa of the Greater Tokyo area – Lime Residence Hiratsuka West, Lime Residence Hiratsuka East and Live Casa Hiratsuka.

The acquisition of the three properties was funded by Japanese yen-denominated debt and cost around 4.6 billion yen in total, with a blended net operating income entry yield of 4.1 per cent and a distribution per stapled security of 0.2 per cent on a FY2025 pro-forma basis.

The manager said that the properties are set to benefit from “strong corporate demand from nearby industrial areas” as the Greater Tokyo area faces “high demand for prime rental housing from the large and diverse working-age population amid limited new supply”.

In terms of capital management, the manager noted that Clas has a “strong financial and liquidity position” with around S$1.5 billion in total available funds. This comprises some S$539 million in cash on-hand and around S$972 million in available credit facilities.

For the quarter, Clas recorded a net asset value per stapled security of S$1.14. Its gearing ratio stood at 38.9 per cent with a debt headroom of around S$1.9 billion and an interest cover of around three times.

Stapled securities of Clas ended Friday 0.6 per cent or S$0.005 lower at S$0.905.