- CapitaLand Ascott Trust’s FY25 revenue and gross profit grew 3% and 4% y-o-y to S$837.6m and S$385.3m, respectively. Stronger operating performance, as well as uplift from active portfolio reconstitution and asset enhancement initiatives (AEIs) offset FX headwinds.
An in-line set of results.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Higher occupancy drives higher RevPAU.
- FY25 RevPAU was 3% higher at S$161 (4Q25: +2% y-o-y to S$180), underpinned by a 3 percentage point (ppt) improvement in average occupancy to 80%. CapitaLand Ascott Trust’s key markets generally posted stable to positive y-o-y RevPAU growth on a same-store basis with the exception of the UK, where RevPAU slipped 2% y-o-y due to the winding down of operations at The Cavendish London in preparation for full-scale renovation works that commenced earlier this month.
- Two things stood out to us.
- In light of ongoing geopolitical tensions between China and Japan, management shared that whilst the proportion of Chinese guests at its Japan hotels have come off, occupancy has held steady due to strong demand from guests of other nationalities, as well as a diversified guest profile at its properties. CapitaLand Ascott Trust has also seen Chinese demand being redirected to assets in other regions such as South Korea.
- 2H25 gross profit from the US student accommodation properties was 15% lower y-o-y on higher operating expenses, due to cost inflation and the adoption of more aggressive marketing strategies to bring up occupancy amidst an increase in supply, particularly in North Carolina. Rents slipped 0.9% in the current academic year alongside occupancy, though the latter remains in line with the market at 89%. Management is looking to cure what it termed an execution blip by the next academic year.
Balance sheet remains healthy with funding cost to remain stable.
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