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

Previous report by OCBC:
2025-01-27 CapitaLand Ascott Trust - Exceptionalism Normalising Into Stability.

Price targets by 4 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