Current location site: Global

• Revenue per available unit for FY 2023 grew 23% year-on-year to pre-pandemic levels
• Achieves about S$156 million or 2% increase in portfolio valuation with better operating performance and outlook for properties

CLAS achieved a fair value gain of S$156 million, about 2% increase in portfolio valuation due to stronger operating performance and outlook for its portfolio despite higher capitalisation rates and discount rates.  Markets with valuation gains include Australia, Europe, Japan, Singapore and United Kingdom.

Mr Bob Tan, Chairman of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS), said: “CLAS continued to deliver strong performance.  Our balanced portfolio of stable and growth income streams enables CLAS to capture growth opportunities while remaining resilient amidst uncertainties.  As part of CLAS’ active portfolio reconstitution strategy, we completed 18 yield-accretive acquisitions in the past two years, boosting CLAS’ income.  In the last seven months, we also announced the divestment of nine mature properties^[4] at a premium to book value.  Our strengthened financial position will enable us to redeploy capital towards more optimal uses such as investments into higher-yielding assets, funding our asset enhancement initiatives (AEI) or paring down debt.  We remain committed to delivering sustainable returns to Stapled Securityholders.”

CLAS continued to deliver strong performance. Our balanced portfolio of stable and growth income streams enables CLAS to capture growth opportunities while remaining resilient amidst uncertainties.

Mr Bob Tan, Chairman, CapitaLand Ascott Trust

Uplifting the value and profitability of CLAS’ portfolio through new developments and asset enhancement initiatives

Previously under development, Standard at Columbia in the USA, a student accommodation property was topped out in June 2023 and received its first batch of students in August 2023.  In Singapore, construction of the new Somerset serviced residence at the popular riverfront lifestyle and entertainment precinct of Clarke Quay is slated for completion in 2H 2025.

CLAS also announced AEI for eight properties to create additional tailwind beyond the travel recovery.  Unlocking growth potential, the uplift in performance post renovation is expected to enhance the properties’ profitability and valuation.  Riverside Hotel Robertson Quay was rebranded and unveiled as The Robertson House by The Crest Collection in October 2023.  The AEI is on track for full completion in 1Q 2024.  AEI for the seven other properties^[8] are set to be completed between 2024 and 2026.
 

CLAS’ strong financial capacity and healthy liquidity position

CLAS is in a strong financial position and continues to be prudent in its capital management.  Despite a high interest rate environment, CLAS’ average cost of debt remains low at 2.4% per annum as at 31 December 2023.  CLAS increased its proportion of debt on fixed rates to 81% and has a total of approximately S$1.32 billion in cash on-hand and available credit facilities.  CLAS’ interest rate cover is also healthy at 4 times.  It has a debt headroom of about S$2 billion and a gearing of 37.9%, which is well below the 50% gearing limit allowable under the property funds appendix issued by the Monetary Authority of Singapore.

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^{Notes:
[1] Excluding one-off items comprising realised exchange gain in FY 2022 and FY 2023.
[2] Revenue per available unit of properties excludes master leases, rental housing and student accommodation.
[3] 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.
[4]   The nine properties comprise four properties in regional France, two properties in Australia and three properties in Japan.
[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 2.6%.
[6]   The Cavendish London, Temple Bar Hotel in Dublin and Ascott Kuningan Jakarta.
[7]   Excluding the Milestone Payments which are to be made only when 70% of the renovations of The Cavendish London and Temple Bar Hotel are completed. Including the Milestone Payments, the EBITDA yield is 5.1% on a FY 2022 pro forma basis.
[8] The seven properties are Citadines Holborn-Covent Garden London, Citadines Les Halles Paris, Citadines Kurfürstendamm Berlin, La Clef Tour Eiffel Paris, Temple Bar Hotel, The Cavendish London and Novotel Sydney Central.}