- CapitaLand Ascott Trust provided a 3Q25 business update – Gross profit grew 1% y-o-y for the quarter (+4% y-o-y for 9M25) but would have declined 2% on a same store basis, underscoring management’s ongoing efforts to reconstitute and uplift the portfolio.
- - Read this at SGinvestors.io -
CLAS’s key markets generally performed well.
- In local currency terms, RevPAU in Australia, UK, and the US grew 22%, 9%, and 8% y-o-y, respectively, while that in Japan would have expanded 7% on a same store basis. Singapore was a laggard where RevPAU declined 2% y-o-y on lower average daily rates (ADR), though the continued softness had been expected this quarter given the delay of the Formula 1 (F1) Grand Prix to October.
- - Read this at SGinvestors.io -
Separately, we are starting to see emerging tail risks from the US market.
- Management cautioned for a softer 4Q25 outlook due to the government shutdown and slower international demand.
- On student accommodation, average occupancy for the current academic year stood at 89%, which is in line with the market, but rent has slipped 0.9% versus the previous academic year due to softer demand and an increase in supply for some markets.
- That being said, CapitaLand Ascott Trust remains confident that its portfolio is relatively sheltered against:
- trade tensions given high proportion of domestic guests at its hotels; and
- changes in international visa policies as 90% of tenants at its student accommodation are locals.
Potential slow and steady trickle-through of lower rates.
- Read more at SGinvestors.io.
