- CapitaLand Ascott Trust (SGX:HMN) reported 2H DPU of S$3.8cts, +14% y-o-y. Full year DPU was 6.57cts, +16% y-o-y, 11%/14% ahead of our/cons est. Adj. for realized FX gains, 2H DPU of S$3.0cts. was flat y-o-y while FY DPU was +14% y-o-y.
Improved operations; boost from one-off gains
- - Read this at SGinvestors.io -
- Factoring in recent acquisition, share placement and a lower discount rate, our estimates for CapitaLand Ascott Trust are relatively unchanged while our DDM-based CapitaLand Ascott Trust's target price goes up by 10% to S$1.10.
Room rates support RevPAU growth
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- 2H23 RevPAU of S$157 rose 10% y-o-y while FY23 full year RevPAU of S$148 rose 23.3% y-o-y. Specifically, 4Q23 RevPAU of S$161 rose 4% q-o-q/ y-o-y and is 3% above pre-pandemic level on a same-store basis.
- Growth in RevPAU was led by room rates while average occupancy was stable q-o-q at 77% for 4Q23 and is 8% below pre-pandemic level.
- Barring China and Vietnam, key markets of Australia, Japan, Singapore, UK and the US continued to report RevPAU above pre-pandemic level notwithstanding some slowdown in Singapore and Australian market. While China and Vietnam grew q-o-q, RevPAU remains ~12-14% below pre-pandemic levels.
Prudent capital management; focus on recycling
- Read more at SGinvestors.io.
