- Limited financial details were disclosed in CapitaLand Ascott Trust's 1Q26 business update. Distributable income was stable y-o-y, supported by the release of past divestment gains (just under S$10mil) to offset income loss from the temporary closure of The Cavendish London (TCL) for renovations and Madison Hamburg for works at the carpark, as well as interest savings from lower rates.
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- On a reported basis, RevPAU declined 2.8% to S$137 mainly due to properties undergoing AEI. Portfolio occupancy remained stable y-o-y at 77%. Moderation in international travel demand and long-haul flights due to higher airfares could be partially offset by stronger domestic and regional demand.
The Positives
Resilient performance despite geopolitical headwinds.
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- We expect low single-digit RevPAU growth in FY26, supported by improving occupancy and stronger performance in the USA amid the upcoming FIFA World Cup 2026.
- In addition, the U.S. PBSA portfolio, which saw some weakness in the academic year (AY) 2025–2026 due to increased supply in some markets, is showing improvement for AY 2026–2027, commencing in August 2026, with over 80% pre-leased and revenue growth expected.
Strong financial position with low borrowing cost.
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