CapitaLand Ascott Trust (CLAS) has announced a 4% y-o-y rise in gross profit for 1QFY2025 ended March 31.
Gross profit from new properties in 1QFY2025 has replaced the gross profit lost from divestments in 2024 as a result of redeployment of divestment proceeds, which minimised the impact on CLAS's income.
On a same-store basis, excluding acquisitions and divestments between 1QFY2024 and 1QFY2025, gross profit was 1% higher y-o-y. Gross profit is the equivalent of net property income.
CLAS's acquisitions include Teriha Ocean Stage (in January 2024), lyf Funan Singapore (in December 2024) and ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae (in January this year).
The divestments were Courtyard by Marriott Sydney-North Ryde (in January 2024), Citadines Mount Sophia Singapore, Hotel WBF Kitasemba East, Hotel WBF Kitasemba West and Hotel WBF Honmachi (in March 2024), Novotel Sydney Parramatta (in September 2024) and Citadines Karasuma-Gojo Kyoto and Infini Garden (in October 2024).
70% of gross profit was from stable sources, such as master leases and management contracts, with minimum guaranteed income comprising 51%, while management contracts from student accomodation and rental housing made up 19% of gross profit. The remaining 30% of gross profit was from growth income comprising management contracts of hospitality properties.
See also: Starhill Global REIT reports net property income of $37.9 mil for 3QFY2024/5, up 0.5% y-o-y
CLAS's aggregate leverage rose to 39.9% as at March 31, up from 38.3% as at Dec 31, 2024. The figure excludes the trust's perpetual securities, which are classified as equity. Interest coverage ratio (ICR), which includes distributions to perpetual securityholders, improved to 3.2 times in 1QFY2025 compared to the 3.1 times announced in FY2024. ICR is a trailing 12 month figure.
CLAS closed at 85.5 cents on April 25, a discount compared to its NAV of $1.11.
