- Notwithstanding pressure from higher rates and FX volatility, CapitaLand Ascott Trust (SGX:HMN)'s diversified portfolio along with top-ups should result in stable distribution. We maintain our estimates and rating.
1Q update: Growing top line
- - Read this at SGinvestors.io -
- Management continues to focus on portfolio reconstitution and asset enhancement. Funding cost moved up and guidance is for further normalisation.
Improving operations
- CapitaLand Ascott Trust's gross profit for 1Q24 grew 15% y-o-y. On a same-store basis, gross profit was 7% higher y-o-y.
- - Read this at SGinvestors.io -
- All of CapitaLand Ascott Trust key markets registered higher RevPAU y-o-y.
- Assets under master leases benefitted from higher variable rent. Rent from US student accommodation grew 5.5% y-o-y. The quarter witnessed strong short-stay demand due to high profile concerts and sporting events. This should continue into 2Q for most markets.
- Corporate demand is picking up in both the US and the UK.
Prudent capital management
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2024-04-25
Read also Maybank's most recent report:
2024-07-31 CapitaLand Ascott Trust - Delivering Resilience; Stability Amid Portfolio Reconstitution.
Previous report by Maybank:
2024-06-04 CapitaLand Ascott Trust - Boosting Stable Income Base.
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 Dividends & Corporate Actions,
CapitaLand Ascott Trust News Articles
