CAPITALAND Ascott Trust : HMN 0%’s (Clas) gross profit for the third quarter rose 13 per cent as compared to the same period last year.

This was led by revenue growth that offset increased operating and financing costs, said Clas’ managers on Monday (Oct 30).

About 44 per cent of the gross profit came from management contracts of serviced residences and hotels. The remaining 56 per cent was from stable income from longer-stay properties, master leases, and management contracts with minimum guaranteed income.

Revenue per available unit (RevPAU) grew 17 per cent to S$154, above pre-Covid levels, as demand for lodging remained healthy, with key markets showing strong growth.

While Singapore and UK continued to exceed pre-Covid RevPAU levels, Japan, Australia and the US showed robust quarterly growth to reach higher RevPAU than pre-Covid on a pro forma basis. This excluded those divested properties between 2019 and 2022.

As at the end of September, the stapled group’s net asset value per stapled security stood at S$1.12.

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While about half of its total assets in foreign currency were hedged, Clas registered a 0.7 per cent loss due to foreign exchange impact after hedges on growth profit for the nine months.

The managers also highlighted its “financing flexibility”. Clas’ gearing stood at 35.2 per cent with a debt headroom of about S$2.3 billion before reaching aggregate leverage of 50 per cent.

The ratio of net debt to net assets for Clas stood at 52.4 per cent. Weighted average debt to maturity was 3.7 years.

Clas’ managers said that its debt due in 2023 were largely refinanced or repaid, and it remains at a healthy financial position with a low effective borrowing cost at 2.4 per cent.

The managers also highlighted a high proportion of debt on fixed rates of 83 per cent as at Sep 30, 2023.

“Gearing and property valuations are expected to remain healthy, supported by active portfolio reconstitution and positive operating performance.

“Clas is well-positioned to navigate the higher-for-longer interest rate environment,” the managers added.

Stapled securities of Clas closed on Friday up 3.9 per cent, or S$0.035, at S$0.925.