Travel Industry News at TravelNewsAsia.com since 1997
Monday, 31 July 2023

CapitaLand Ascott Trust Reports Impressive H1 2023 Results

(31/07/23)  CapitaLand Ascott Trust’s (CLAS) gross profit for 1H 2023 rose 31% to S$154.4 million compared to 1H 2022, with revenue for the period increasing by 30% to S$346.9 million compared to 1H 2022.

The positive results are mainly attributed to the strong operating performance of CLAS’ properties as travel continues to pick up pace.

The higher revenue and gross profit were also due to additional contributions from CLAS’ 14 quality operating assets acquired in FY 2022 and 2Q 2023, which were largely longer-stay assets.

On a same-store basis, revenue and gross profit for 1H 2023 increased by 26% and 25% respectively compared to 1H 2022.

With the strong portfolio performance, CLAS has increased its Distribution per Stapled Security (DPS) for 1H 2023 by 19% year-on-year (y-o-y) to 2.78 cents. CLAS’ total distribution for 1H 2023 also grew 26% y-o-y to S$96.3 million compared to 1H 2022. Excluding one-off items, adjusted DPS rose 37% y-o-y to 2.44 cents.

What a view! Room at the Somerset Pattaya in Thailand. Click to enlarge.
What a view! Room at the Somerset Pattaya in Thailand

CLAS’ REVPAU increased 44% y-o-y to S$138 for 1H 2023. In 2Q 2023, REVPAU was S$149, a 20% increase y-o-y, reaching 98% of pre-pandemic 2Q 2019 pro forma REVPAU.

2Q 2023 REVPAU for key markets such as Australia, Japan, Singapore, United Kingdom (UK) and USA have performed above pre-pandemic pro forma levels based on same-store comparison.

Bob Tan, Chairman of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management (the Managers of CLAS), said, “CLAS’ strong performance is supported by the twin pillars of growth and stable income. In 1H 2023, our growth income contribution rose to 42% from 32% in 1H 2022 as we continued to capitalise on the increasing travel demand. Gross profit and REVPAU have further increased, moving closer to our pre-pandemic performance. Our yield-accretive investments of largely longer stay assets further enhanced our stable income, which will strengthen CLAS’ resilience and provide downside protection against potential headwinds. CLAS remains committed to delivering sustainable returns to our Stapled Securityholders.”

CLAS’ growth income sources such as hotels and serviced residences under management contracts contributed 42% of the total gross profit in 1H 2023, while stable income sources contributed the remaining 58%.

CLAS says that it remains focused on maintaining a balanced mix of income streams with a medium-term asset allocation target to have 25-30% of its total portfolio value in longer-stay assets such as rental housing and student accommodation properties, and the remaining 70-75% in hospitality assets.

To further uplift the value and profitability of its assets, five properties will undergo asset enhancement initiatives (AEI) in FY 2023 and are expected to command higher room rates post-refurbishment. The latest asset slated for AEI is La Clef Tour Eiffel Paris by The Crest Collection in France. The five properties will remain open during the refurbishment and the upgrades are expected to be completed by 1H 2024. Construction of the new Somerset serviced residence at Clarke Quay in Singapore is on track to be completed in 2H 2025.

CLAS’ master leases registered a 9% y-o-y increase in gross profit mainly due to higher variable rent and contributions from new acquisitions. CLAS’ longer-stay properties, which include student accommodation and rental housing properties, maintained a strong average occupancy rate of over 95%. CLAS’ operating student accommodation properties in the USA were 98% leased for the academic year (AY) 2022-2023. Pre-leasing for the next AY is healthy, with an expected rent growth of about 6% y-o-y.

To further strengthen its stable income stream, in addition to the completion of two turnkey rental housing acquisitions in Japan, CLAS’ student accommodation property in the USA, Standard at Columbia, has received its temporary certificate of occupancy on 30 June 2023. The property has a pre-leased occupancy rate of 87% as at June 2023 and is set to welcome its first batch of students for the AY 2023-2024, starting in August 2023.

“We expect continued demand for CLAS’ properties as international arrivals are projected to further recover to between 80% and 95% of pre-pandemic levels by the end of 2023. We also expect international travel to pick up pace as flight capacities increase. Despite macroeconomic uncertainties, CLAS’ performance is expected to remain resilient given our geographic diversification, range of lodging asset classes and different contract types,” said Serena Teo, Chief Executive Officer of the Managers of CLAS. “In 2Q 2023, we completed the turnkey acquisitions of two rental housing properties in Japan, Eslead Residence Osaka Fukushima East in Osaka and Granfore Hakata Waterfront in Fukuoka. Both properties are well-leased, and our rental housing portfolio continues to register an average occupancy rate of over 95%, contributing stable income to CLAS. As part of our ongoing portfolio reconstitution efforts, we have entered into conditional sale and purchase agreements to divest four mature properties in the regional cities of France. This will give us the flexibility to recycle capital into higher-yielding investments. We will continue to exercise financial discipline as we seek investment, asset enhancement and portfolio reconstitution opportunities across our lodging asset classes.”

CLAS is in a strong financial position and remains prudent in its capital management. As at 30 June 2023, 80% of its debt are on fixed rates and the weighted average debt to maturity is 3.6 years, mitigating the impact of rising interest rates.

CLAS’ effective borrowing cost remains low at 2.3% per annum with an interest cover of 4.3 times.

It has a debt headroom of S$1.8 billion and a gearing of 38.6%, which is well below the 50% gearing limit allowable under the property funds appendix issued by the Monetary Authority of Singapore.

CLAS has a total of approximately S$1.11 billion in cash on-hand and available credit facilities. Its geographically diversified portfolio with exposure to 12 foreign currencies mitigates the volatility in foreign exchange.

Latest exclusive video interviews Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani, Executive Chairman; 9 Exclusive Video Interviews from ASEAN Tourism Forum 2024 in Vientiane, Laos; 8 NTO Press Conferences from ASEAN Tourism Forum 2024 in Vientiane, Laos; 13 HD Video Interviews from World Travel Market 2023 in London, England; 5 HD Video Interviews from APG World Connect 2023 in Monaco, France; 15 HD Video Interviews from Routes World 2023 in Istanbul, Türkiye; and Electric Airport Taxis at Almaty Airport (ALA) in Kazakhstan - HD Video Interview with CEO.



Headlines: BFS Receives GDP Certification for Dedicated Pharma Handling Facility at BKK  Solomon Islands Welcomed 26,036 Visitors in 2023; Positive Outlook for 2024  Vietjet Signs MOU with Airbus for 20 A330-900 Aircraft  Hong Kong Airport Reports January 2024 Passenger and Cargo Numbers  Malaysia Aviation Group Becomes Official Airline Partner of MATTA Fair 2024  AirAsia Malaysia Launches Flights Between Kota Kinabalu and Shanghai, China  Taiwan's Starlux Airlines Orders Five Airbus A350 Freighters and Three A330neos  United Airlines to Resume Flights to Tel Aviv, Israel  Hahnair Appoints Stephen Chung as Regional Vice President Asia Pacific  Korean Air Cargo Expands Partnership with Vienna Airport  IndiGo to Launch Daily Flights Between Bengaluru and Bali, Indonesia  Thai Airways Confirms Boeing 787-9 Order  SkyScape Becomes Eve Air Mobility's First Urban ATM Customer in Japan  Royal Brunei Airlines Orders Four Boeing 787-9 Aircraft  TransNusa Airlines Rebranding as a Premium Service Carrier  Moxy Hotel Opens in Bangkok, Thailand  Peninsula Bangkok Appoints Masahisa Oba as Managing Director  Silk Avia Takes Delivery of First New ATR 72-600 Turboprop Aircraft in Central Asia  Korean Air to Enhance Retailing Strategy with Accelya's FLX Platform  Rohit Pandey Returns to Minor as GM of the Anantara Jaipur Hotel  Marriott Soft Opens First Moxy Hotel in Malaysia  AirAsia X to Launch Flights Between Kuala Lumpur and Almaty, Kazakhstan on 14 March  Malaysia Airlines Opens Ticketing Outlet at Paradigm Mall in Petaling Jaya  Marriott Expands Apartments with Properties Signed in Italy, USA and Saudi Arabia  Stockholders of Hawaiian Holdings Vote to Adopt Merger Agreement with Alaska Airlines  Thailand Travel Mart Plus (TTM+) 2024 Opens Online Registration for Buyers and Sellers  Lore Group's Five Design-Led Hotels Join Global Hotel Alliance  Hilton Partners Small Luxury Hotels of the World  British Airways Using E-Logs Platform to Predict and Enhance Aircraft Maintenance Issues  Surf Air Mobility Secures Early Delivery Positions for 90 Electra eSTOL Aircraft  Nine Exclusive Video Interviews with VIPs at ASEAN Tourism Forum 2024 in Vientiane, Laos  Thai Airways to Unveil Details of Boeing Aircraft Order at Singapore Air Show 2024  Hong Kong Reports Provisional Visitor Arrival Numbers for January 2024  Accor Hotels in New Zealand to Become Gold Standard Sustainable Tourism Businesses  American Express Opens World's Largest Centurion Lounge at ATL Airport in USA  Minor Hotels Reports Record Full Year Figures  Korean Air's Acquisition of Asiana Gets Conditional Clearance from European Commission  CapitaLand Establishes CLARA Fund II; Acquires Two lyf-Branded Properties as Seed Assets  ATR Receives B-Score from CDP Climate Change  Dassault to Showcase Falcon 6X and Falcon 2000LXS at the Singapore Air Show 2024  IHG's Expanding Hotel Portfolio in Vientiane - Interview with Murali Viswanathan, CGM  Settha Palace Hotel in Vientiane, Laos - Interview with Hala Krimi, General Manager  Vietjet Launches Flights Between Saigon and Chengdu, China  Inthira Vang Vieng Hotel in Laos - Interview with Charles-David Hay, General Manager  IHG Hotels at Dubai Festival City Appoints Pranav Vohra as Cluster Commercial Director  S Vang Vieng Boutique Hotel in Laos - Interview with Sengnikone Bouphaphanh  Full Moon Island Resort in Kaoh Sdach, Cambodia - Interview with Indra Khanitha Lay Prohas  Jetstar Launches Flights from Brisbane to Osaka and Seoul  IHG to Expand Six Senses Brand to Kyoto, Japan  DiscoverLaos - HD Video Interview with Southisack Sayasavanh, Tours Director  Cosi Vientiane Nam Phu Hotel - Interview with Pasin Nopsuwan, General Manager  Hyatt Expands JdV Brand of Hotels to Goa, India  Thailand to See Increase in Chinese New Year Tourism Spend  Lao Airlines - Exclusive Video Interview with Chanthanon Khampheng at ATF 2024  Dansavanh Nam Ngum Resort in Laos - Interview with Michelle Wang, Travel Director  Marriott Hotel Opens on Gurney Drive in Penang, Malaysia  Emirates to Increase Capacity on Flights to Osaka, Japan  Michelle Lee Joins Pullman Bangkok Hotel G as General Manager  Rosewood Makes Changes to Senior Management Team  Smiths Detection to Upgrade Security at Fukuoka Airport in Japan  Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani  AirAsia Indonesia Launches Flights Between Jakarta and Kota Kinabalu, Malaysia  Philippine Airlines to Deploy Amadeus Traveler DNA  Mantra Club Croc Airlie Beach Completes A$8 Million Refurbishment of All 160 Guestrooms  Vietjet Wet Leases Two Aircraft to Meet Surge in Lunar New Year Travel Demand  Singapore Cruise Centre to Upgrade Tanah Merah Ferry Terminal  IHG Signs New-Build 150-Key Holiday Inn Hotel in Guwahati, India  Thai AirAsia Launches Flights from Bangkok (DMK) to Shanghai and Kaohsiung  TFE Signs New-Build Apartment Hotel in Brisbane, Australia  Ritz-Carlton Hotel Opens in Las Colinas Area of Dallas, USA  8 NTO Press Conferences from the ASEAN Tourism Forum 2024 in Vientiane, Laos  Swiss to Launch Flights Between Zurich and Seoul, South Korea  Singapore Welcomed 13.6 Million Visitor Arrivals in 2023; Targets 15-16 Million in 2024  Cathay Pacific Resumes Flights Between Hong Kong and Chennai, India  Greater Bay Airlines Increases Flights Between Hong Kong and Bangkok, Thailand  Thai AirAsia Launches Flights Between Hat Yai and Singapore  CapitaLand Sells Citadines Mount Sophia Singapore for SG$148 Million  American Airlines to Launch Flights Between DFW and Brisbane, Australia  Minor Hotels Signs Second Anantara Resort in Oman  Dubai Home to Dorchester Collection's First Hotel in Middle East  Global Airline RPK in 2023 Up 36.9% on 2022; International Traffic Up 41.6%  Amadeus Adds Border Control Solutions to Portfolio with Vision-Box Acquisition  Ascott Opens 8th Citadines Property in Singapore  Brix Hotel by Pinetree Opens in Sepang, Malaysia  IATA Reports December and Full-Year 2023 Air Cargo Numbers  Capella to Open Hotel in Taipei, Taiwan  Seibu Prince Hotels to Deploy Sabre SynXis Central Reservation System  Hong Kong Airport Reports December and Full-Year 2023 Traffic  IHG Signs Franchise Agreement for a voco Hotel in Stockholm, Sweden  Air Canada Joins Hidden Disabilities Sunflower Program  IHG Signs Sixth Vignette Collection Hotel in Thailand  Airbus Helicopters Partners Tata to Establish H125 Final Assembly Line in India  Strikes Force Finnair to Cancel Around 550 Flights  Record Number of Summer Flights from Munich Airport to Asia  AirAsia Move Expands Event Ticketing with Coras Partnership  Laos Tourism Press Conference at the ASEAN Tourism Forum 2024 in Vientiane, Lao PDR  Thailand Tourism Press Conference with Thapanee Kiatphaibool and Nithee Seeprae of TAT  Philippines Tourism Press Conference at the ASEAN Tourism Forum 2024 in Vientiane, Laos  Malaysia Tourism Press Conference at the ASEAN Tourism Forum 2024 in Vientiane, Laos  Cambodia Tourism Press Conference at the ASEAN Tourism Forum 2024 in Vientiane, Laos  Singapore Tourism Press Conference by Kwan Su Min, Director Communications Marketing Group, STB  Myanmar Tourism Press Conference by Tin Myo Aung, Deputy Director - Ministry of Hotels and Tourism at ATF 2024  Vietnam Tourism Press Conference at ASEAN Tourism Forum (ATF) 2024 in Vientiane, Laos  13 Exclusive HD Video Interviews from World Travel Market 2023 in London, England  5 Exclusive HD Video Interviews from APG World Connect 2023 in Monaco, France  15 Exclusive HD Video Interviews from Routes World 2023 in Istanbul, Türkiye  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2024 TravelNewsAsia.com