CapitaLand Ascott Trust achieves 6% increase in gross profit with stronger operating performance
• Total core distribution increases by 1%, delivering stable distribution
• Announces asset enhancement initiatives for three additional properties to uplift profitability and asset value
CapitaLand Ascott Trust (CLAS) achieved a 6% increase in gross profit year-on-year (y-o-y), reaching S$182.5 million for 1H 2025. Revenue was also up 3% y-o-y to S$398.5 million. The higher gross profit and revenue were mainly attributed to stronger operating performance, CLAS’ portfolio reconstitution strategy and asset enhancement initiatives (AEI). On a same-store basis, both gross profit and revenue grew 4% y-o-y in 1H 2025.
CLAS’ revenue per available unit[1] (REVPAU) for 1H 2025 rose 3% to S$150, compared to 1H 2024. CLAS’ REVPAU for 2Q 2025 also saw a 3% increase y-o-y to S$159 on the back of higher average occupancy rates. Most of CLAS’ key markets registered REVPAU growth.
Driven by the operating performance of the portfolio, CLAS’ total core distribution[2] for 1H 2025 increased by 1% y-o-y to S$91.6 million. Total distribution remained at S$96.5 million. Core Distribution per Stapled Security[2] (DPS) and DPS remained relatively stable at 2.40 cents and 2.53 cents respectively. CLAS is committed to distributing stable core distributions, through enhancing core distribution income from operating performance and distributing non-periodic and/or divestment gains when appropriate.
Mr Lui Chong Chee, Chairman of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS), said: “CLAS continues to deliver consistent growth, achieving higher revenue and gross profit in 1H 2025. Despite global uncertainties, CLAS remains resilient, supported by our diversified portfolio across geographies, lodging asset classes and contract types. In 1H 2025, 66% of CLAS’ gross profit was from stable income sources, of which 16% of the gross profit was contributed by CLAS’ assets in the living sector[3]. The remaining 34% of the gross profit came from growth income sources. We continue to seek opportunities to reconstitute and enhance our 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.”
Ms Serena Teo, Chief Executive Officer of the Managers of CLAS, said: “As part of our proactive portfolio management strategy, we have planned to undertake three additional AEIs in 2025 and 2026, bringing the total number of AEIs to five[4]. One of the additional AEIs, for ibis Ambassador Seoul Insadong, was successfully completed in 1H 2025. The total capital expenditure to upgrade the remaining four properties in the pipeline is approximately S$205 million. These AEIs will enhance the value proposition of our properties located in key gateway cities, enabling them to better capture lodging demand and, uplift both profitability and asset value.”
“These AEIs complement our growth strategy through portfolio reconstitution. In January 2025, CLAS redeployed divestment proceeds to acquire two freehold limited-service hotels in Japan, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, for a total of JPY21 billion (S$178.5 million[5]). This acquisition has a DPS accretion of 1.6%[6], and will more than replace the income from our four previously divested properties in Japan[7]. We continue to strengthen the quality and earnings resilience of CLAS’ portfolio, positioning us for future growth,” added Ms Teo.
Asset enhancement and development projects to drive future growth
CLAS completed six AEIs in 2024[8]. In 2025 and 2026[9], CLAS has planned to undertake three additional AEIs, on top of The Cavendish London in the United Kingdom and Sydney Central Hotel in Australia which were announced previously. The three additional properties are ibis Ambassador Seoul Insadong in South Korea, Citadines République Paris in France, and Sotetsu Grand Fresa Osaka-Namba in Japan. Of the three, the AEI for ibis Ambassador Seoul Insadong began in 1Q 2025 and was completed in 2Q 2025.
The total capital expenditure for the four remaining AEIs is approximately S$205 million, of which CLAS’ investment is approximately S$145 million. The remaining will be funded by the master lessee or operator of the properties.
CLAS is also redeveloping its 192-unit Somerset serviced residence at Clarke Quay in Singapore. Development work is slated for completion in 2026, with the property commencing operations in 2027.
CLAS remains in strong financial position
CLAS continues its active and prudent capital management approach. CLAS’ gearing is at 39.6% as at 30 June 2025. This is well below the 50% gearing limit allowable under the property funds appendix issued by the Monetary Authority of Singapore. CLAS also increased its fixed-rate borrowings from about 76% as at 31 March 2025 to about 82% as at 30 June 2025.
CLAS’ average cost of debt remains low at 2.9% per annum as at 30 June 2025 and is expected to be stable. The weighted average debt to maturity is 3.4 years. Interest cover is also healthy at 3.1 times. CLAS has a total of approximately S$1.46 billion in cash on-hand and available credit facilities.
Summary of Results
|
| 1H 2025 | 1H 2024
| Variance % |
| Revenue (S$ million) | 398.5 | 386.4 | 3 |
| Gross Profit (S$ million) | 182.5 | 172.9 | 6 |
| Total distribution (S$ million) (1) | 96.5 | 96.5 | - |
| Total Core Distribution (2) | 91.6 | 91.0 | 1 |
| Distribution Per Stapled Security (DPS) (cents) | 2.53 | 2.55 | (1) |
| Core DPS (cents) (adjusted for non-periodic items) (2) | 2.40 | 2.41 | - |
| Revenue Per Available Unit (REVPAU) (S$/day) | 150 | 145 | 3 |
(1) Total distribution included non-periodic items relating to (1) realised exchange gain arising from repayment of bank loans in 1H 2025, and (2) realised exchange gain arising from settlement of cross currency interest rate swaps in 1H 2024.
(2) Adjusted for the non-periodic items mentioned in note 1 above.
Distribution and Book Closure Date
| Distribution | For 1 January 2025 to 30 June 2025 |
| Distribution Per Stapled Security | 2.526 cents |
| Book Closure Date | 6 August 2025 |
| Payment Date | 29 August 2025 |
For CLAS’ 1H 2025 financial statement and presentation, please visit www.capitalandascotttrust.com.
[1] Revenue per available unit of properties excludes master leases, rental housing and student accommodation.
[2] Excluding non-periodic items relating to realised exchange gain arising from repayment of bank loans in 1H 2025 and (2) realised exchange gain arising from settlement of cross currency interest rate swaps in 1H 2024.
[3] Refers to CLAS’ rental housing and student accommodation properties.
[4] ibis Ambassador Seoul Insadong, Citadines République Paris, The Cavendish London, Sydney Central Hotel and Sotetsu Grand Fresa Osaka-Namba.
[5] Based on an exchange rate of JPY1 to S$0.0085.
[6] On a FY 2024 pro forma basis.
[7] The four divested properties in Japan are Infini Garden, a rental housing property in Fukuoka and three hotels in Osaka – Hotel WBF Honmachi, Hotel WBF Kitasemba East and Hotel WBF Kitasemba West.
[8] The Robertson House by The Crest Collection in Singapore, Citadines Les Halles Paris, Citadines Kurfürstendamm Berlin, La Clef Tour Eiffel Paris, Citadines Holborn-Covent Garden London and Temple Bar Hotel Dublin by The Unlimited Collection.
[9] Timelines of the AEIs are subject to change. AEI schedules may be adjusted as appropriate in view of macroeconomic situation, lodging demand and renovation costs.
