CapitaLand Ascott Trust - OCBC Investment 2023-10-31: Jet Set

• CapitaLand Ascott Trust (SGX:HMN) reported another set of robust results at its 3Q23 business update, as gross profit for the period grew 13% y-o-y to reach 103% of 3Q19 pro forma levels.

The wanderlust continues

• - Read this at SGinvestors.io -
• Notwithstanding the fact that 3Q23 growth has moderated from 1Q23 and 2Q23 levels on the back of higher base effects, CapitaLand Ascott Trust's 9M23 gross profit posted a decent 23% y-o-y growth, as increase in revenue more than offset higher operating and financing costs.

Further positive momentum likely to be driven by occupancy

• In 3Q23, CapitaLand Ascott Trust’s portfolio revenue per available unit (RevPAU) grew 17% y-o-y and 3% q-o-q to S$154, reaching 102% of pre-COVID 3Q19 pro forma levels.
  • - Read this at SGinvestors.io -
  • Performance in China and Vietnam continued demonstrate positive q-o-q recovery momentum, with same-store RevPAU at 80% and 84% of 3Q19 levels respectively (2Q23: 78% and 83% of 2Q19 levels respectively).
• Strong RevPAU performance thus far continues to be underpinned by average daily room rates (ADR).
• Management has guided that positive RevPAU performance going forward is likely to be driven by improvements in portfolio occupancy, which stood at 77% in 3Q23 (2Q23: 75%) versus ~85% pre-COVID. There could also be some positive improvements in ADR for properties undergoing rebranding or asset enhancement initiatives (AEIs).

Credit metrics remain healthy

• Read more at SGinvestors.io.

Above is an excerpt from a report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Read also OCBC's most recent report:
2025-04-29 CapitaLand Ascott Trust - Jitterbug.

Previous report by OCBC:
2025-02-03 CapitaLand Ascott Trust - Out With The Old, In With The New.

Price targets by other brokers at CapitaLand Ascott Trust Target Prices.

Listing of research reports at CapitaLand Ascott Trust Analyst Reports.

Relevant links:
CapitaLand Ascott Trust Share Price History,
CapitaLand Ascott Trust Announcements,
CapitaLand Ascott Trust Dividend Payout Dates & Corporate Actions,
CapitaLand Ascott Trust News