Capitaland Ascott Trust (CLAS) has reported a 6% year-on-year increase in gross profit for the first half of 2025, reaching SGD182.5 million, driven by acquisitions and a recovery in revenue per available room (RevPAR). However, the distribution per unit (DPU) saw a slight decline of 1% year-on-year to 2.53 Singapore cents, attributed to fewer one-off income items compared to the previous year, according to a DBS Research report.
The trust’s portfolio RevPAR rose by 3% year-on-year to SGD159 million in the second quarter, bolstered by strong performances in overseas markets such as Australia, the US, and the UK. This growth offset a 3% decline in Singapore’s RevPAR, which faced challenges from increased supply competition.
CLAS continues to focus on asset enhancement initiatives (AEIs) and acquisitions to drive future growth. The completion of Somerset Liang Court in 2026 is expected to increase the room count of its Singapore portfolio. The trust is also leveraging its asset recycling strategy, with a healthy gearing of 40% and SGD1.8 billion in debt headroom, to pursue growth opportunities.
The trust issued SGD260 million in perpetual securities at a 4.2% coupon rate in May 2025, replacing previous securities with a 3.1% rate. This move is part of CLAS’s strategy to maintain stable capital management and support ongoing AEIs.
Looking ahead, CLAS aims to deliver stable distributions, with a focus on maintaining DPU stability in comparison to FY24’s 6.1 Singapore cents. The trust’s strategic initiatives are expected to enhance core income and support higher DPU in the coming years.
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