CapitaLand Ascott Trust’s (CLAS) gross profit for 1QFY2026 ended March 31 was affected by the closure of The Cavendish London and Madison Hamburg for renovation works. The latter has reopened, and the remaining works are scheduled to be completed in 2QFY2026.
While the manager only shares specific figures at half-yearly intervals, CLAS revealed on April 27 that it faced negative net impact in 1QFY2026 from acquisitions, divestments and other ongoing asset enhancement initiatives (AEIs).
In February, CLAS acquired three Japan rental housing properties for JPY4.6 billion ($38.3 million) with a net operating income entry yield of 4.1% in FY2025.
Funded by JPY-denominated debt, distribution per share (DPS) accretion from the acquisition is 0.2% on a FY2025 pro forma basis, according to CLAS.
CLAS says 1QFY2026 distribution income remained “relatively stable” due to the distribution of past divestment gains to mitigate the impact of the closure of The Cavendish London and Madison Hamburg, along with interest savings from lower interest rates.
In addition, interest savings from the repayment of higher-interest debt in 2QFY2026 using Citadines Central Shinjuku Tokyo divestment proceeds is expected to mitigate the income lost through divestments and ongoing AEIs, says CLAS.
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Actual portfolio revenue per available unit (RevPAU) during the quarter was $137, and occupancy stands at 77%. Excluding The Cavendish London and acquisitions and divestments in 2025, RevPAU was up 1% y-o-y.
Across geographies, 1QFY2026 RevPAU gained 3%, 1% and 7% y-o-y in CLAS’s Japan, UK and US properties respectively on a same-store basis. In Australia and Singapore, CLAS’s RevPAU rose 7% and 2% y-o-y respectively.
In France, CLAS’s master leases returned EUR5.4 million ($8.07 million) in revenue during the quarter, “stable” y-o-y on a same-store basis.
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Net asset value per stapled security is $1.14 as at March 31.
Gearing as at March 31 stands at 38.9%, with a $1.9 billion debt headroom from the aggregate leverage limit of 50%. CLAS has $1.51 billion in total available funds, comprising $539 million in cash on hand and $972 million in available credit facilities.
Interest coverage ratio stands at 3.0 times, while the effective borrowing cost is 2.8% per annum.
CLAS’s weighted average debt to maturity is 3.1 years, with 78% of total debt on fixed rates.
CLAS units closed 0.5% down at 90 cents on April 24, down 5.7% year to date.
