CapitaLand Ascott Trust - DBS Research 2023-10-31: Sustaining The Travel Faith

• CapitaLand Ascott Trust (SGX:HMN)'s 3Q23 gross profit rose 13% y-o-y to reach ~103% of 3Q19 levels. 9M23 gross profit stacks up to 23% y-o-y growth, largely front loaded in 1H23. We recap that 1H23 EBITDA at S$154m had made up ~47% of our full year estimates and our full year EBITDA estimates implies a ~6% y-o-y increase in EBITDA in 2H23 on a high base.
• - Read this at SGinvestors.io -

Portfolio RevPAR passes pre-COVID levels this quarter.

• Portfolio RevPAU grew a respectable 17% y-o-y to ~102% of pre-COVID levels, alongside a pick-up in occupancy to 77% (2Q23: 75%, 2019: ~85%).
• On a country basis, all markets are commanding above 2019 levels RevPAR, apart from China and Vietnam which continues to close the gap at ~16% to 20 % below pre-COVID levels, with more upside in the coming quarters. Apart from China and Vietnam, portfolio RevPAR as at 3Q23 was generally in the range of 110% to 126% of pre-COVID levels.
• - Read this at SGinvestors.io -
• We continue to see further traction for Singapore revenue, stemming from the lease structure conversion of Ascott Orchard from master lease to Management Contract with Minimum Guaranteed Income (MCMGI), along with the ramp up and stabilisation of newly rebranded The Robertson House.

Student accommodation contribution remains stable.

• Read more at SGinvestors.io.

Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-10-31 SGinvestors.io

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