Clas stays upbeat on US student housing despite 15% drop in segment’s H2 gross profit
Chief executive of Clas’ managers Serena Teo says they will take ‘drastic measures’ to boost occupancy and leasing rates in the next academic year
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[SINGAPORE] The managers of CapitaLand Ascott Trust (Clas) said that they remain optimistic about the US student housing market even as gross profit from the segment fell 15 per cent year on year in the second half of FY2025.
In an earnings briefing on Friday (Jan 30) morning, following the results release the night before, chief executive of the managers Serena Teo pointed to temporary supply shocks and “execution” factors for the decline in gross profit, rather than a deterioration in demand fundamentals.
For one, the university markets that Clas has targeted have attracted more competition due to strong enrolment growth and rising room rates.
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