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CapitaLand Ascott Trust's core FY2024 DPS rises 3% y-o-y but headline DPS falls 7%y-o-y

By The Edge Singapore

/ The Edge Singapore |

January 27, 2025 8:06 AM SGT

Lyf Funan Photo Credit: CLAS

CapitaLand Ascott Trust’s (CLAS) headline distribution per stapled security in FY2024 and 2HFY2024 declined by 7% y-o-y to 6.1 cents and 3.55 cents respectively. However, CLAS’ core DPS for 2HFY2024 rose 3% y-o-y to 3.08 cents and core DPS for FY2024 rose by 1% y-o-y to 5.49 cents. The lower headline numbers were due to realised exchange gains in FY2023, arising from settlement of cross-currency interest rate swaps and repayment of foreign currency bank loans and medium-term notes.

According to CLAS’ statement, 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. Although gross profit rose by 10% y-o-y in FY2024 to $370.9 million and by 8% y-o-y in 2H2024 to $198 million, total distribution fell by 2% y-o-y $231.2 million in FY2024 and by 4% y-o-y in 2H2024 to $137.8 million due to the non-periodic items caused by currency swaps.

CLAS’ revenue per available unit (REVPAU1 ) for 2H2024 grew 6% to $167, compared to 2H2023; REVPAU for 4Q2024 went up by 9% y-o-y to $176 above pre-pandemic levels. 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 4Q2023. REVPAU for all of CLAS’ key markets was higher with Japan achieving the biggest increase of 37% y-o-y. Australia, Singapore and UK also attained double-digit growth.

CLAS’ portfolio valuation rose by 1% or $72 million due to stronger operating performance and completed AEIs. Markets with valuation gains are Europe (including UK), Indonesia, Japan, Malaysia, Singapore and South Korea.

“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,” says Serena Teo, CEO of CLAS’ manager.

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