- CapitaLand Ascott Trust (SGX:HMN)'s 3Q23 portfolio revenue per available unit (RevPAU, +17% y-o-y, +3% q-o-q) was at 102% of 3Q19 levels, mainly driven by room rates, while portfolio occupancy improved q-o-q from 75% to 77%. 6 out of 8 key markets performed at 100-126% of 3Q19 levels while China and Vietnam performed at 80% and 84% of 3Q19 levels, respectively, but continued to show improvement.
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Balance sheet stable; cost of borrowing to creep up in FY24F
- Gearing fell q-o-q from 37.9% to 35.2% post equity fund raising (EFR) but we expect it to increase to ~39% after milestone and asset enhancement initiatives (AEI) payments.
- Cost of debt crept up q-o-q from 2.3% to 2.4% but interest coverage ratio was stable q-o-q at 4.2x (1H23: 4.3x). While 83% of CapitaLand Ascott Trust’s borrowings are on fixed rates with an average hedge tenor of 3.7 years, 18% of total borrowings are up for refinancing in FY24F, of which 90% are dominated in €, US$ and ¥.
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Future acquisitions will require divestments and/or EFR
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