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Ascott Orchard Singapore 1BRMCapitaLand Ascott Trust (CLAS) achieved an 80% increase in gross profit for 2H 2022 to S$164.6 million compared to 2H 2021.

DPS for FY 2022 increased 31% y-o-y to 5.67 cents, and excluding one-off items, adjusted DPS for FY 2022 rose 106% y-o-y to 4.79 cents. 4Q 2022 REVPAU rose 78% y-o-y to S$155, reaching pre-pandemic levels in line with 4Q 2019 pro forma REVPAU.Revenue per available unit (REVPAU) increased 81% year-on-year (y-o-y) to S$143 for 2H 2022.

With the strong portfolio performance, CLAS increased its Distribution per Stapled Security (DPS) for 2H 2022 by 47% y-o-y to 3.33 cents. This was mainly attributed to higher revenue from CLAS’ existing portfolio and contributions from its expanded portfolio of longer-stay assets, comprising student accommodation and rental housing properties in the United States of America (USA) and Japan, newly acquired serviced residences in Australia, France and Vietnam, as well as from lyf one-north Singapore which soft opened in 4Q 2021. On a same-store basis, gross profit for 2H 2022 increased by 67% compared to 2H 2021.

CLAS’ properties continued to achieve strong operating performance as international travel recovered. CLAS’s key markets registered quarter-on-quarter REVPAU growth, with the most significant improvements in Japan, Australia and the USA.

Riverside Hotel Robertson Quay will be rebranded as The Robertson House by The Crest Collection

Riverside Hotel Robertson Quay will be rebranded as The Robertson House by The Crest Collection.

CLAS recorded a gross fair value gain of about S$200 million on the value of its portfolio, notwithstanding higher capitalisation and discount rates. This was due to more robust operating performance and an improved outlook for its properties.

Growth income contribution increased to 48% in 2H 2022 as our properties saw an upswing in demand with the recovery in the hospitality sector post-COVID-19, while our stable income streams offered resilience against downside risks.

To further enhance our stable income portfolio, CLAS invested S$420 million in 15 accretive acquisitions in FY 2022, predominantly in the longer-stay segment. Ltd. (the Managers of CLAS) said: “Our diversified and well-balanced portfolio underpins CLAS’ robust performance.” “We remain committed to delivering sustainable returns to Stapled Securityholders.”

“It is situated in one of the fastest growing cities in Japan, and our existing rental housing properties in Fukuoka have performed well.” added Ms Teo.

Ms Serena Teo, Chief Executive Officer of the Managers of CLAS, said: “While macroeconomic challenges remain, we are cautiously optimistic about the continued recovery in the hospitality industry.”

“We remain prudent in our capital management approach as we seek opportunities to reconstitute our portfolio. Our latest acquisition of rental housing property in Fukuoka will enhance CLAS’ income resilience.” The AEI will uplift the value and profitability of these properties and further enhance our income streams.

In the coming year, we will carry out asset enhancement initiatives (AEI) for four properties in Singapore, France, Germany and the UK. We expect CLAS to continue to benefit from the reopening of more destinations and the travel demand.

 

 

Written by: William Trevan

 

 

 

 

 

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