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.
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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.
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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.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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