CapitaLand Ascott Trust - OCBC Investment 2024-01-30: First Class

• CapitaLand Ascott Trust (SGX:HMN)’s 2H23 revenue and gross profit both increased by ~12% y-o-y to S$397.6m and S$183.9m, respectively.
• 2H23 distribution per stapled security (DPS) increased by 14% y-o-y to S$0.038; excluding one-off items, adjusted DPS would have remained stable y-o-y at S$0.030. See CapitaLand Ascott Trust's distribution dates.

FY23 results came in above expectations on one-off items

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Robust financial performance underpinned by recovery in operational metrics

• CapitaLand Ascott Trust’s 2H23 RevPAU rose 10% y-o-y to S$157, reaching 103% of 2H19’s pro forma RevPAU. Strong RevPAU performance throughout the year was underpinned by elevated average daily rates (ADR).
• Portfolio occupancy stood at 77% in 4Q23, ~92% of pre-COVID levels. China and Vietnam continue to lag, with 4Q23 same-store occupancy at 86% and 88% of 4Q19’s pro forma levels, respectively, though recovery momentum in these markets remains positive.
• As international flight capacity continues to increase and visa-free travel arrangements are implemented, management of CapitaLand Ascott Trust expects occupancy to continue to recover, lending support to RevPAU.

Credit metrics remain healthy

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-01-30 SGinvestors.io

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