CapitaLand Ascott Trust - OCBC Investment 2024-07-26: Summer Vibes

• CapitaLand Ascott Trust (SGX:HMN)’s 1H24 revenue and gross profit grew 11% and 12% y-o-y to S$386.4m and S$172.9m, respectively. Stronger operating performance and contribution from new properties more than offset the impact of divestments, asset enhancement initiatives (AEIs), and FX headwinds.

Upbeat top line on stronger operating performance, but dividend down 8% y-o-y due to lower non-periodic items

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Cautiously optimistic of even better performance in 2H24

• CapitaLand Ascott Trust’s 2Q24 portfolio RevPAU was up 4% y-o-y at S$155, exceeding 2Q19 pro forma levels by 2%. This was largely due to an increase in room rates as average occupancy of the portfolio remained stable y-o-y at 75%. In particular, the US and Japan markets performed well, with 2Q24 RevPAU increasing 3% and 29% y-o-y, respectively.
• France will be an exciting market to watch in 3Q24, with management sharing that it had locked in demand for the Paris 2024 Olympics earlier on. RevPAU for the period is expected to be supported by occupancy rates above 80% and room rate increase of more than 50%.
• On a same store basis, 1H24 revenue from CapitaLand Ascott Trust’s French properties would have been up 11% y-o-y thanks to an uplift from major concerts especially in 2Q24.
• On the other hand, there was some weakness in Australia and the UK this past quarter due to softer corporate demand and AEI impact, respectively.

Gearing and cost of debt remained stable

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-07-26 SGinvestors.io

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