Current location site: Global

Singapore, 27 January 2025 – CapitaLand Ascott Trust (CLAS) increased its 2H 2024 gross profit by 8% year-on-year (y-o-y) to S$198.0 million compared to 2H 2023.  Revenue also rose by 6% y-o-y, reaching S$423.2 million.  The increase was mainly due to CLAS’ stronger operating performance, additional contributions from CLAS’ new acquisitions and properties which have completed their asset enhancement initiatives (AEI) in 2024, which mitigated the impact of foreign exchange and higher financing costs.  On a same-store basis, both gross profit and revenue increased by 4% y-o-y each.

With the continued strong demand for international travel, CLAS’ revenue per available unit (REVPAU^[1]) for 2H 2024 grew 6% to S$167, compared to 2H 2023, continuing its upward path.  CLAS’ REVPAU for 4Q 2024 went up by 9% y-o-y to S$176.  This exceeds pre-pandemic levels, at 113% of 4Q 2019 pro forma REVPAU^[2].  The REVPAU growth was a result of an increase in average daily rates and a higher average occupancy rate at 81%, compared to 77% in 4Q 2023.  REVPAU for all of CLAS’ key markets was higher with Japan achieving the biggest increase of 37% y-o-y.  Australia, Singapore and the United Kingdom (UK) also attained double-digit growth.
 

Commitment to distribute stable core distributions and long-term growth
CLAS is committed to delivering stable distributions through enhancing core distribution income from operating performance and distributing non-periodic gains^[3] and/or divestment gains when appropriate.  The commitment is anchored by CLAS’ strategy to strengthen its portfolio and earnings, from organic and inorganic growth.

CLAS’ organic growth is driven by proactive asset management and AEIs to enhance operational performance and returns.  CLAS’ inorganic growth creates value through portfolio reconstitution, unlocking gains by divesting properties and reinvesting proceeds into higher-yielding assets.  To deliver sustainable returns to Stapled Securityholders, CLAS will continue to maintain a balanced mix of and stable^[4] and growth^[5] income through its diversified portfolio across geographies and types of contracts and assets.  In 2H 2024, CLAS’ stable income assets contributed 62% of its total income, providing resilience, while the remaining 38% from growth income assets enable CLAS to benefit as lodging demand increases.

CLAS’ core Distribution per Stapled Security (DPS) for 2H 2024 rose 3% y-o-y to 3.08 cents and DPS for 2H 2024 is 3.55 cents.  Stronger operating performance, acquisitions and completed AEIs mitigated the impact of divestments, ongoing AEIs, higher financing costs and depreciation of most foreign currencies against the Singapore Dollar.  Total core distribution for 2H 2024 increased 5% y-o-y to S$117.0 million.  Core DPS for FY 2024 was 5.49 cents, 1% higher y-o-y.

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 is committed to deliver stable distributions to Stapled Securityholders.  Our continued strong performance in FY 2024 is testament to our value creation strategy through active portfolio reconstitution, maximising the operational performance of our properties and asset enhancements to uplift their value.  In 2024, CLAS completed over S$500 million in divestments and about S$350 million in accretive investments.  Part of the divestment proceeds have been used to pare down debt to optimise our balance sheet, and will also be used to fund our AEIs.  We will continue to strengthen our operating performance to enhance our core distribution.”

CLAS records gross fair value gain and remains in a strong financial position
CLAS’ portfolio valuation rose by 1% or S$72 million due to stronger operating performance and completed AEIs.  Markets with valuation gains are Europe (including UK), Indonesia, Japan, Malaysia, Singapore and South Korea.

CLAS continues to adopt a proactive and prudent capital management strategy.  Its average cost of debt remains low at 3% per annum as at 31 December 2024.  77% of CLAS’ debt is on fixed rates and the weighted average debt to maturity is 3.7 years.  Interest cover is also healthy at 3.1 times.  CLAS’ gearing is 38.3%, which is well below the 50% gearing limit allowable under the property funds appendix issued by the Monetary Authority of Singapore.  CLAS also has a total of approximately S$1.6 billion in cash on-hand and available credit facilities.

For more information on CLAS’ value creation initiatives, please see the Annex.

For CLAS’ FY 2024 financial statement and presentation, please visit www.capitalandascotttrust.com

^{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 December 2019 and the 2019 pro forma figures include the performance of the A-HTRUST portfolio.
[3]  Such as realised foreign exchange gains.
[4]  Stable income sources comprise CLAS’ properties under master leases and management contracts with a minimum guaranteed income as well as management contracts for its longer-stay properties such as rental housing and student accommodation.
[5]  Growth income sources comprise CLAS’ serviced residences and hotels under management contracts.}