CapitaLand Ascott Trust reports 8% y-o-y decline in 1HFY2024 DPS of 2.55 cents

Khairani Afifi Noordin
2-min read

The depreciation of most foreign currencies against the Singapore dollar affected distributions.

CapitaLand Ascott Trust (CLAS) has reported a distribution of stapled security (DPS) of 2.55 cents for its 1HFY2024 ended June, down 8% from the 2.78 cents recorded in the previous corresponding period.

Acquisitions, completed asset enhancement initiatives (AEIs) and interest savings from the repayment of higher interest debt mitigated the impact of divestments and ongoing AEIs, while the depreciation of most foreign currencies against the Singapore dollar affected distributions.

Excluding the lower level of non-periodic items, the adjusted DPS for 1HFY2024 stood at 2.41 cents. The total distribution for 1HFY2024 was $96.5 million, comparable to $96.3 million in 1HFY2023.

CLAS recorded a 12% y-o-y increase in its 1HFY2024 gross profit to $172.9 million. Revenue also grew by 11% y-o-y, reaching $386.4 million. This was mainly on the back of sustained lodging demand and stronger operating performance.

On a same-store basis, gross profit and revenue increased by 3% and 4% y-o-y respectively.

Amid increasing demand for international travel, CLAS’s revenue per available unit (RevPAU) for 1HFY2024 grew 5% to $145 from $138 in the previous corresponding period. This exceeds pre-pandemic levels, at 102% of 2QFY2019 pro forma RevPAU.

All key markets also performed at or above pre-pandemic levels on a same-store basis. The increase in RevPAU was a result of higher room rates, with key markets Japan and the US leading the growth.

CLAS’ average cost of debt remains low at 3% per annum as at June 30. It is expected to be stable through to the end of 2024, as about 82% of the trust’s debt is effectively on fixed rates and the weighted average debt to maturity is 3.6 years. Interest cover is also healthy at 3.7 times.

The trust’s gearing stood at 37.2%. CLAS also has a total of approximately $1.29 billion in cash on-hand and available credit facilities.

“We continue to press forward with our portfolio reconstitution efforts to enhance CLAS’ portfolio resilience and position CLAS for future growth,” says the trust managers’ chairman Lui Chong Chee.

“In the past year, CLAS announced divestments of $408.1 million across 10 mature assets. Divested at a premium to book value, we will unlock about $44.6 million in gains, at an average exit yield of about 3.8%. This strengthens our financial capacity to redeploy capital towards optimal and accretive uses,” he adds.

Units in CLAS closed 1 cent lower or 1% down on July 25 at 90 cents.

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