In the first half of 2024, CapitaLand Ascott Trust (CLAS) achieved a remarkable 12% increase in gross profit, reaching S$172.9 million.
This growth was underpinned by a significant resurgence in global travel demand, leading to stronger operating performance across CLAS’s diversified lodging portfolio.
Revenue for the trust also rose by 11% year-on-year, totaling S$386.4 million. This growth was further supported by a 5% increase in revenue per available unit (REVPAU), climbing to S$145 for the first half of the year compared to the same period in 2023.
On a quarterly basis, REVPAU for the second quarter of 2024 saw a 4% year-on-year increase, reaching S$155, which not only surpassed pre-pandemic levels but also demonstrated the resilience of the travel and lodging sector.
Lui Chong Chee, Chairman of CapitaLand Ascott Trust Management Limited, expressed optimism about the future, stating, “CLAS’ operating performance remains robust, delivering double-digit growth for revenue and gross profit in 1H 2024. We continue to press forward with our portfolio reconstitution efforts to enhance CLAS’ portfolio resilience and position CLAS for future growth.”
The trust’s strategic divestment of S$408.1 million worth of mature assets across 10 properties, including locations in France, Australia, Japan, and Singapore, played a crucial role in strengthening its financial capacity. The gains from these divestments, which amounted to approximately S$44.6 million, are set to be reinvested into more lucrative opportunities, bolstering future growth prospects.
Serena Teo, CEO of the Managers of CLAS, highlighted the importance of these strategic moves, noting that part of the proceeds from divestments has been utilized to reduce high-interest debt. “In 1H 2024, we have also completed AEI for four of our properties. Located in key gateway cities, they are well-positioned to capture demand from tourism, business activities, and events,” she said.
Looking ahead, CLAS maintains a cautiously optimistic outlook on the demand for lodging, as the initial surge of pent-up travel demand gradually returns to more regular patterns. The trust’s diverse geographic presence and range of lodging asset classes provide a solid foundation amidst ongoing global uncertainties.
In addition to its operational successes, CLAS remains financially robust, with a low average cost of debt at 3% and a healthy gearing ratio of 37.2%, well below the regulatory limit. With approximately S$1.29 billion in cash and available credit facilities, CLAS is well-positioned to navigate future challenges while continuing to deliver value to its stakeholders.
