CapitaLand Ascott Trust (CLAS) has reported distribution per security of 2.53 cents for its 1HFY2025 ended June, versus 2.55 cents for 1HFY2024.
Core DPS, which takes into account adjustments for non-periodic items, was 2.4 cents, versus 2.41 cents.
With better operating performance, revenue in the same period was up 3% y-o-y to $398.5 million; total distribution held steady at $96.5 million.
Total core distribution, another metric, was up 1% y-o-y to $91.6 million.
In 1HFY2025, 66% of CLAS’ gross profit was from stable income sources, of which 16% of the gross profit was contributed by CLAS’ assets in the living sector. The remaining 34% of the gross profit came from growth income sources.
CLAS says it is committed to distributing stable core distributions, through enhancing core distribution income from operating performance and distributing non-periodic and, or divestment gains when appropriate.
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"Despite global uncertainties, CLAS remains resilient, supported by our diversified portfolio across geographies, lodging asset classes and contract types," says CLAS chairman Lui Chong Chee.
"By divesting properties at the optimal stage of their life cycle, we are able to reinvest the proceeds into higher-yielding acquisitions, AEIs or other value-accretive uses to deliver stable and sustainable returns to stapled securityholders," he adds.
Serena Teo, CEO of the manager, says CLAS has three additional AEIs this year and next, bringing the total number of AEIs to five — one of which was for ibis Ambassador Seoul Insadong, completed in 1HFY2025.
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The total capex to upgrade the remaining four properties in the pipeline is around $205 million.
“These AEIs complement our growth strategy through portfolio reconstitution," she adds.
CLAS’ gearing, as at June 30, is 39.6%, well below the 50% gearing limit allowed by MAS.
CLAS also increased its fixed-rate borrowings from about 76% as at March 31 to about 82% as at June 30.
Its average cost of debt is held at 2.9% per annum as at June 30 and is expected to be stable.
The weighted average debt to maturity is 3.4 years; interest cover at 3.1 times.
CLAS maintains $1.46 billion in cash on-hand and available credit facilities.
CLAS closed at 91 cents on July 28, down 0.55%.
