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Wednesday, February 05, 2025

CapitaLand Ascott Trust's 2H FY24 Result Review

Wednesday, February 05, 2025 CapitaLand Ascott Trust , CLAS 0 Comments

Basic Profile & Key Statistics


Key Indicators


Performance Highlight

CapitaLand Ascott Trust (CLAS) reported a YoY increase in revenue and gross profit, driven by higher income from existing properties and contributions from newly acquired assets. However, total distribution and DPS declined due to higher finance costs, lower realized exchange gains, and increased tax expenses. Excluding non-periodic exchange gains, core distribution and core DPS saw an improvement.

Revenue per Available Unit



In 4Q 2024, RevPAU improved YoY, reaching 113% of pre-COVID levels. Similarly, 2H RevPAR showed positive growth, indicating strong demand recovery across CLAS’s portfolio.

Acquisition

In December 2024, CLAS acquired lyf Funan Singapore.

Divestment

During 2H, CLAS divested several assets, including Novotel Sydney Parramatta, Citadines Karasuma-Gojo Kyoto, and Infini Garden. Additionally, the divestment of Somerset Olympic Tower Tianjin is expected to be completed in 2Q 2025.

Development

The redevelopment of Somerset Liang Court Singapore is on track, with completion expected in 2026.

Asset Enhancement Initiative

AEI works were completed for Citadines Holborn-Covent Garden London and Temple Bar Hotel Dublin in 2H 2024. 2 ongoing AEIs at The Cavendish London and Sydney Central Hotel are expected to be completed in 2026, further enhancing asset value and income potential.

Related Parties Shareholding

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

Lease Profile

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

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

DPU Breakdown

  • TTM Distribution Breakdown:
    • 88.5% from Operation
    • 11.5% from Management Fees Paid in Units

Trends (Up to 10 Years)



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

Price Range & Relative Valuation Metrics



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

Author's Opinion

Compared to the previous half-year, performance improved due to seasonal tourism demand. On the debt front, 9% of debt will mature in 2025.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

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.

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