- CapitaLand Ascott Trust’s 1H25 revenue and gross profit rose 3% and 6% y-o-y to S$398.5m and S$182.5m, respectively. Stronger operating performance, portfolio reconstitution, and asset enhancement initiatives (AEIs) offset FX headwinds.
Decent 1H25 results despite macroeconomic uncertainty.
- - Read this at SGinvestors.io -
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Geographic diversification cushioned slowdown in Singapore.
- CapitaLand Ascott Trust’s 2Q25 portfolio RevPAU was 3% higher y-o-y at S$159, mainly driven by a 3 percentage point (ppt) improvement in average occupancy to 78%. Key markets of Australia, UK, and US performed well, with 2Q25 RevPAU improving 15%, 4%, and 8% y-o-y in local currency terms, respectively.
- On student accommodation in the US, management shared that over 90% of tenants are local students, and that its properties target sophomores rather than freshmen. These allow its portfolio to be relatively sheltered against changes in international visa policies.
- Meanwhile, Japan saw RevPAU decline 23% y-o-y; excluding the impact of portfolio reconstitution, RevPAU on a same-store basis would have been up 10%.
- RevPAU in Singapore also moderated 3% y-o-y to S$163, though this was not a surprise given weakening industry-wide data, and 3Q25 will likely also be soft given the shift in the Formula 1 Grand Prix from September to October.
Increase fair value estimate to S$1.02 and reiterate BUY rating.
- Read more at SGinvestors.io.
