CapitaLand Ascott Trust RevPAU up 88% in Q3 on higher occupancy, ADR

CAPITALAND Ascott Trust (Clas) on Friday (Oct 29) reported an 88 per cent increase in RevPAU (portfolio revenue per available unit) to S$132 due to higher occupancy and average daily rates. 

Gross profits for Clas rose up to 90 per cent of third-quarter 2019 pro forma levels on higher contribution from growth income sources, which comprised of management contracts of serviced residences and hotels. 

The higher contribution was due to stronger performance across most markets. In terms of country performance, China and Singapore recorded the strongest quarter on quarter growth of 28 per cent and 27 per cent respectively, while Australia and the US continued to perform close to pre-Covid levels.

Stable income sources include those from master leases, longer-stay properties, and management contracts with minimum guaranteed income contributed 56 per cent of Q3’s gross profit.

Majority of Clas’ debt due in 2022 has been refinanced, and its gearing stood at 35.8 per cent as at Sep 30, 2022. It also has a high proportion of debt effectively on fixed rates – locked in for a weighted average of 3.5 years – which will help to mitigate the effects of a high interest rate environment, according to Clas’ report.

Looking ahead, Clas expects to benefit from the improving outlook for travel as well as greater demand for accommodation, with forward bookings for leisure travel remaining robust. It also noted a surge in travel bookings for its key market Japan, which has fully reopened to foreign travellers.

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Moving forward, Clas will “exercise financial discipline in its investment and portfolio reconstitution plans” to adapt to macroeconomic headwinds including recession concerns and rising interest rates.

An advanced distribution per stapled security (DPS) of S$0.01078 was paid out on Oct 18. The next distribution will comprise Clas’ distribution income for the period from Aug 24 to Dec 31 and semi-annual distributions will resume thereafter. 

As at 9.14 am, stapled securities of Clas were trading 1.62 per cent or S$0.015 higher to S$0.940 on Friday.