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) 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. 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.
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.”
Ms Serena Teo, Chief Executive Officer of the Managers of CLAS, said: “As CLAS presses forward with its portfolio reconstitution strategy, there may be some near-term unevenness on CLAS’ operational income resulting from divestments or properties undergoing AEIs. However, these efforts will enhance CLAS’ income and generate more value to Stapled Securityholders over time, as we have seen from properties that have completed AEIs such as Citadines Holborn-Covent Garden in London and The Robertson House by The Crest Collection in Singapore. To mitigate the short-term impact of our upcoming AEIs, CLAS will distribute past undistributed divestment gains to keep distributions stable.”
“Amid the macroeconomic uncertainties, CLAS is cautiously optimistic about the demand for lodging and remains focused on its strategy to strengthen its portfolio and earnings. CLAS is expected to remain resilient given its geographic diversification, range of lodging asset classes and different contract types. Coupled with our disciplined capital management and focus on sustainability, we are confident in delivering long-term value for our Stapled Securityholders,” added Ms Teo.