CapitaLand Ascott Trust's 1H FY25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Revenue and gross profit have improved year-on-year (YoY), mainly driven by stronger operating performance. However, total distribution and DPS remained flat YoY, due to a lower realised exchange gain.

Revenue per Available Unit

RevPAU improved YoY for both 2Q and 1H FY25, supported by higher average occupancy.

Acquisition

In January 2025, CLAS completed the acquisition of two hotels in Japan.

Divestment

In April 2025, CLAS completed the divestment of Somerset Olympic Tower Tianjin in China as part of its portfolio reconstitution strategy.

Development

The redevelopment of Somerset Liang Court Singapore is on track, with completion expected in 2026 and opening targeted for 2027.

Asset Enhancement Initiative

In 1H FY25, CLAS completed the AEI for ibis Ambassador Seoul Insadong. The AEI for Citadines République Paris is currently ongoing and is expected to be completed in 4Q 2025. 3 other AEIs, located in Singapore, London, and Jakarta are planned with completions targeted between 2026 and 2027.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Moderate

Lease Profile

• Highest Annual Lease Expiry in 4 Years: Favorable
• WALE: Favorable
• Weighted Average Land Lease Expiry: Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Moderate
• Cost of Debt: Favorable
• Gearing Ratio: Moderate
• Hybrids over Debts + Hybrids: Less Favorable
• Fixed Rate Debt Proportion: Moderate
• Unsecured Debt Proportion: Less Favorable
• Highest Annual Debt Maturity in 4 Years: Favorable
• WADM: Favorable

Diversification Profile

• Top Geographical Weightage: Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Manager's Fees over Operating Distributable Income: Moderate
• Operating Distributable Income on Capital: Moderate
• Operating Distributable Income Margin: Less Favorable
• Operating Distribution Proportion: Less Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 88.2% from Operation
• 11.8% from Management Fees Paid in Units

Trends (Up to 10 Years)

• Uptrend: None
• Slight Uptrend: Adjusted Interest Coverage Ratio
• Flat: Operating Distributable Income over Manager's Fees, Operating Distributable Income Margin
• Slight Downtrend: Top 10 Tenants' Weightage, Operating Distribution Proportion
• Downtrend: DPU from Operations, NAV per Unit, RevPAU, Top 5 Properties' Weightage, Property Yield, Operating Distributable Income on Capital

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y & 10y; Above +1SD for 5y
• P/NAV: Average for 1y, 3y, 5y; Below -1SD for 10y

Author's Opinion

Compared to the previous half-year, overall performance has softened, largely due to seasonal effects in travel demand, higher finance expenses, lower realized foreign exchange gains, and increased tax expenses. For debt, only 8% of the total debt is due for refinancing this year.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

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REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.