CapitaLand Ascott Trust - Maybank Research 2024-07-31: Delivering Resilience; Stability Amid Portfolio Reconstitution

• CapitaLand Ascott Trust (SGX:HMN) reported 1H24 DPU of S$2.55 cents, -33% h-o-h/-8% y-o-y. 1H24 revenue & NPI of S$386.4m and S$172.9m are +11.4% and +12% y-o-y, respectively. Stable revenue from master lease and MCMGI underpinned topline gains, while divestments chipped away at management contract growth.
• - Read this at SGinvestors.io -

Stable revenue underpinned topline

• RevPAU of S$145 in 1H24 is -8% h-o-h/+5% y-o-y. 2Q24 RevPAU is sequentially higher at S$155 and 2% above pre-pandemic level on a same-store basis. Stable revenue from master lease and MCMGI rose ~32% h-o-h.
• From CapitaLand Ascott Trust's master lease portfolio, all key markets posted higher rents in 1H24, with Japan portfolio receiving variable rents and contribution from acquisition.
• - Read this at SGinvestors.io -
• Growth revenue from management contracts saw a dip of 16% h-o-h/4% y-o-y in 1H24, mainly on income loss from divestments. Japan and US led growth in management contract revenue, lifted by decent leisure travel demand, elevated occupancy at rental housing and a robust 1H24 event calendar.
• While SG and AU assets saw same-store revenue rise, this was offset by divestments.

Gearing, borrowing cost and replacing perps

• Read more at SGinvestors.io.

Li Jialin Maybank Research | https://www.maybank-ke.com.sg/ 2024-07-31 SGinvestors.io

---