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CapitaLand Ascott Trust reports 47% increase in 2HFY2022 DPS of 3.33 cents

Felicia Tan
·4-min read

For the FY2022, CLAS’s DPS increased by 31% y-o-y to 5.67 cents, up from FY2021’s DPS of 4.32 cents.

The managers of CapitaLand Ascott Trust (CLAS) have reported a distribution per stapled security (DPS) of 3.33 cents for the 2HFY2022 ended Dec 31, 2022. The DPU for the second half of the FY stood 47% higher than 2HFY2021’s DPS of 2.27 cents.

For the FY2022, CLAS’s DPS increased by 31% y-o-y to 5.67 cents, up from FY2021’s DPS of 4.32 cents.

Excluding one-off items, which include the divestment gain of $45 million distributed in the FY2021, the adjusted DPS for the FY2022 rose by 106% y-o-y to 4.79 cents.

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During the 2HFY2022, CLAS’s revenue grew by 69% y-o-y to $353.8 million due to an increase in revenue from the trust’s existing portfolio and contributions from its expanded portfolio of longer-stay assets.

Gross profit surged by 80% y-o-y to $164.6 million. This comprised the profits from the trust’s properties on master leases, properties on management contracts with minimum guaranteed income and properties on management contracts.

On a same store basis, revenue and gross profit for the 2HFY2022 increased by 58% and 67% respectively.

As a result of the growth in revenue and gross profit, CLAS’s total distribution for the 2HFY2022 increased by 54% y-o-y to $113.2 million.

During the six-month period, CLAS reported revenue per available unit (RevPAU) of $143, up by 81% y-o-y, as it continued to achieve strong operating performance on the back of the return of international travel.

RevPAU for the 4QFY2022 rose by 78% y-o-oy to $155. The quarter’s RevPAU reached CLAS’s pre-pandemic levels in line with its 4QFY2019 pro forma RevPAU, which includes the performance of Ascendas Hospitality Trust’s (A-HTRUST) portfolio.

All of CLAS’ key markets registered q-o-q RevPAU growth, with the biggest sequential improvements coming from Japan, Australia and the USA. CLAS’s portfolios in Singapore, Australia, the UK and the US performed at pre-Covid RevPAU levels.

CLAS’s occupancy rate for the 4QFY2022 stood at 78%. As at Dec 31, 2022, CLAS’s student accommodation and rental housing properties recorded an average occupancy rate of over 95%.

In the FY2022, CLAS’s revenue grew by 58% y-o-y to $621.2 million due to the higher revenue from its existing portfolio and additional contributions from the properties acquired during the year. This was partly offset by the lower revenue from the divestments in the FY2021.

Gross profit increased by 63% y-o-y to $282.8 million mainly from the higher revenue

Total distribution for the year increased by 38% y-o-y to $189.8 million.

RevPAU for the FY2022 increased by 74% y-o-y to $120.

As at Dec 31, 2022, CLAS recorded a gross fair value gain of about $200 million on the value of its portfolio due to stronger operating performance and improving outlook for its properties. The trust’s key markets with valuation gains include Australia, Singapore, the UK and the US.

Cash and cash equivalents as at Dec 31, 2022, stood at $298.9 million.

“CLAS’s robust performance is underpinned by our diversified and well-balanced portfolio. Growth income contribution increased to 48% in 2HFY2022 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,” says Bob Tan, chairman of the managers.

“To further enhance our stable income portfolio, CLAS invested $420 million in 15 accretive acquisitions in FY2022, predominantly in the longer-stay segment,” he adds.

Serena Teo, CEO of the managers says they are “cautiously optimistic” of the hospitality industry’s continued recovery.

“We expect CLAS to continue to benefit from the reopening of more destinations and the pent-up demand for travel. In the coming year, we will be carrying out asset enhancement initiatives (AEI) for four properties in Singapore, France, Germany and UK. The AEIs will uplift the value and profitability of these properties and further enhance our income streams,” she says.

“We remain prudent in our capital management approach as we seek opportunities to reconstitute our portfolio. Our latest acquisition of a rental housing property in Fukuoka will enhance CLAS’s income resilience. It is situated in one of the fastest growing cities in Japan and our existing rental housing properties in Fukuoka have performed well,” she adds.

The DPS will be paid out on March 1.

Units in CLAS closed 1 cent lower or 0.93% down at $1.07 on Jan 27.

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