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Singapore, 26 July 2024 – CapitaLand Ascott Trust (CLAS) increased its 1H 2024 gross profit by 12% year-on-year (y-o-y) to S$172.9 million.  Revenue also rose by 11% y-o-y, reaching S$386.4 million.  The increase was mainly on the back of sustained lodging demand and stronger operating performance.  On a same-store basis, gross profit and revenue increased by 3% and 4% y-o-y respectively.

As demand for international travel continued to increase, CLAS’ revenue per available unit (REVPAU^[1]) for 1H 2024 grew 5% to S$145, compared to 1H 2023.  On a quarterly basis, CLAS’ REVPAU for 2Q 2024 went up by 4% y-o-y to S$155.  This exceeds pre-pandemic levels, at 102% of 2Q 2019 pro forma REVPAU^[2].  All key markets also performed at or above pre-pandemic levels on a same-store basis.  The increase in REVPAU was a result of higher room rates, with key markets Japan and United States of America (USA) leading the growth.

Distribution per Stapled Security (DPS) for 1H 2024 was 2.55 cents.  Acquisitions, completed asset enhancement initiatives (AEIs) and interest savings from the repayment of higher-interest debt mitigated the impact of divestments and ongoing AEIs, while the depreciation of most foreign currencies against the Singapore Dollar affected distributions.  Excluding the lower level of non-periodic items^[3], adjusted DPS for 1H 2024 was relatively stable at 2.41 cents.  Total distribution for 1H 2024 was S$96.5 million, comparable to S$96.3 million in 1H 2023.

Mr Lui Chong Chee, Chairman of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS), said: “CLAS’ operating performance remains robust, delivering double-digit growth for revenue and gross profit in 1H 2024.  We continue to press forward with our portfolio reconstitution efforts to enhance CLAS’ portfolio resilience and position CLAS for future growth.  In the past year, CLAS announced divestments of S$408.1 million across 10 mature assets^[4].  Divested at a premium to book value, we will unlock about S$44.6 million in gains, at an average exit yield of about 3.8%^[5].  This strengthens our financial capacity to redeploy capital towards optimal and accretive uses.  We remain committed to delivering long-term returns to Stapled Securityholders.”

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_{Notes:
[1]  Revenue per available unit of properties excludes master leases, rental housing and student accommodation.
[2]  The combination with Ascendas Hospitality Trust (A-HTRUST) was completed on 31 Dec 2019 and the 2019 pro forma figures include the performance of the A-HTRUST portfolio.
[3]  Non-periodic items in 1H 2023 and 1H 2024 relate to realised exchange gain arising from the settlement of cross currency interest rate swaps.
[4]  The 10 properties comprise four properties in regional France, two properties in Australia, three properties in Japan and one property in Singapore.
[5] The exit yield of the France and Australia properties is computed based on FY 2022 Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA). The exit yield of the Japan portfolio is not meaningful and has not been included in the average exit yield computation as the properties were largely closed in 2022. If included, the average exit yield will be about 2.8%.
[6]  The Robertson House by The Crest Collection, Citadines Les Halles Paris, Citadines Kurfürstendamm Berlin and La Clef Tour Eiffel Paris.
[7]  Citadines Holborn-Covent Garden London, Temple Bar Hotel Dublin, The Cavendish London and Sydney Central Hotel.}