CapitaLand Ascott Trust H1 DPS dips 1% to S$0.0253

[SINGAPORE] The manager of CapitaLand Ascott Trust (Clas) on Tuesday (Jul 29) posted a 1 per cent drop in distribution per stapled security (DPS) to S$0.0253 for its first half ended Jun 30, from S$0.0255 in the previous corresponding period.

Excluding non-periodic items related to realised exchange gain from bank loan repayments and from cross currency interest rate swap settlements, core DPS was stable at S$0.024, compared with S$0.0241.

Revenue for the first half inched up 3 per cent to S$398.5 million from S$386.4 million in the year-ago period. Profit rose 6 per cent, to S$182.5 million from S$172.9 million previously.

The higher profit and revenue were mainly attributed to stronger operating performance, a portfolio reconstitution strategy and asset enhancement initiatives (AEIs), but was partly offset by the impact of other lower income and depreciation of foreign currencies against the Singapore dollar.

On a same-store basis, excluding acquisitions and divestments made between H1 2024 and H1 2025, gross profit was 4 per cent higher year on year, the manager said.

Clas completed six AEIs in 2024. These were for The Robertson House in Singapore, Citadines Les Halles Paris, Citadines Kurfürstendamm Berlin, La Clef Tour Eiffel Paris, Citadines Holborn-Covent Garden London and Temple Bar Hotel Dublin.

Total distribution was largely unchanged on the year, at S$96.49 million, compared to S$96.47 million. Total core distribution, excluding the non-periodic items, was up 1 per cent on the year at S$91.6 million from S$91 million.

The distribution will be paid out on Aug 29, after the record date of Aug 6.

Revenue per available unit (RevPau) for H1 rose 3 per cent on the year to S$150 from S$145, on higher average occupancy rates, with most of its key markets posting RevPau growth.

Gearing stood at 39.6 per cent as at Jun 30, with a debt headroom of around S$1.8 billion, based on a gearing limit of 50 per cent. The stapled group’s proportion of debt on fixed rates was around 82 per cent as at end June, up from 76 per cent as at end March.

Average cost of debt stood at 2.9 per cent as at end June and is expected to remain stable. Clas’ weighted average debt to maturity was around 3.4 years and its interest cover was 3.1 times.

Portfolio reconstitution and enhancement

Lui Chong Chee, chairman of the managers of Clas, said the stapled group would continue seeking opportunities to reconstitute and enhance its portfolio.

“By divesting properties at the optimal stage of their life cycle, we are able to reinvest the proceeds into higher-yielding acquisitions, AEIs or other value-accretive uses to deliver stable and sustainable returns to stapled securityholders,” he said.

Serena Teo, chief executive officer of the managers of Clas, noted plans to undertake three additional AEIs in 2025 and 2026 as part of Clas’ portfolio management strategy. This will bring Clas’ total AEIs to five.

The AEIs complement Clas’ growth strategy through portfolio reconstitution and will enhance the value proposition of its properties in key gateway cities, enabling them to better capture lodging demand and, uplift both profitability and asset value, Teo said.