The rise in H2 FY2025 DPS follows a 4% growth in revenue to S$439.1 million for the half year

 

[SINGAPORE]   CapitaLand Ascott Trust   : HMN 0% (Clas) on Thursday (Jan 29) posted a marginal 1 per cent rise in distribution per stapled security (DPS) to S$0.0358 for the second half ended Dec 31, 2025, from S$0.0355 in the year-ago period.

 

Its core DPS fell 4 per cent on the year to S$0.0295, from S$0.0308 in H2 FY2024. This was mainly due to the property tax adjustments in FY2024 and FY2025, said the managers of Clas in a bourse filing on Thursday evening. Excluding these adjustments, core DPS would have been &ldquo relatively stable&rdquo .

 

The distribution will be paid out on Feb 27, after the record date on Feb 6.  

 

The rise in H2 FY2025 DPS follows a 4 per cent increase in revenue to S$439.1 million for the half year, from S$423.2 million in the year-ago period. Gross profit rose 2 per cent to S$202.8 million, from S$198 million a year prior. 

 

The managers attributed the growth to stronger operating performance, portfolio reconstitution and asset enhancement initiatives (AEIs), which helped offset the impact of foreign-currency depreciation against the Singapore dollar and property tax adjustments. 

 

There was a slight uptick in its revenue per available unit (RevPAU) to S$171 a day in the half-year, from S$167 a day in the year-ago period. 

 

These pushed distributable income in the three months to S$160.2 million, up 19 per cent from H2 FY2024&rsquo s S$134.8 million.

 

For the full-year, distributable income jumped 11 per cent year on year to S$256.7 million, from S$231.2 million in FY2024. Revenue rose 3 per cent on the year to S$837.6 million, from S$809.5 million the previous year.

 

This brought DPS for FY2025 to S$0.061, holding steady from FY2024. After adjusting for non-periodic items, core DPS stood at S$0.0535, down 3 per cent from S$0.0549 recorded in the same period the year before.

 

Net asset value per stapled security stood at S$1.17 as at end-2025. Gearing fell to 37.7 per cent, from 39.3 per cent, following the divestment of Citadines Central Shinjuku Tokyo in October 2025, and higher asset values from portfolio valuation gains. This will provide &ldquo ample debt headroom to support growth&rdquo , said the managers. 

 

The interest cover ratio was &ldquo healthy&rdquo at 3 times, with 78 per cent of debt effectively on fixed rates.

 

Weighted average debt maturity stood at 3.4 years, with average cost of debt remaining &ldquo low&rdquo at 2.9 per cent per annum. 

 

An Australian master lease, which accounts for 3 per cent of gross rental income from master leases, is set to expire in Q4 2026. The bulk of master leases, at 78 per cent, expire in 2030 and beyond.

 

Serena Teo, chief executive of the managers, said in a statement on Thursday that the managers intend to strengthen the resilience of Clas&rsquo portfolio by bolstering its presence in key markets and recycling capital from divestments. 

 

&ldquo We are progressing towards our medium-term portfolio allocation of 25 to 30 per cent in the living sector, while maintaining 70 to 75 per cent in hospitality assets,&rdquo she noted. More AEIs are also planned in cities such as London, Sydney and New York, which will improve asset performance and value, she added.

CapitaLand Ascott Trust (CLAS) says it is extending its hotel management agreement with Ascott Hospitality Management (UK) for The Cavendish London for an additional five years.

 

In a bourse filing on Dec 31, CLAS says the extension will bring the initial term of the management agreement to 35 years, with all other terms and conditions remaining the same.

 

Earlier, on Oct 9 2023, CLAS entered into a purchase agreement to acquire The Cavendish London at a share purchase consideration of GBP116.3 million ($201.3 million). The Cavendish London was acquired alongside two other properties, the Temple Bar Hotel in Dublin as well as the Ascott Kuningan Jakarta. The acquisitions were completed on Nov 30 2023.

 

According to the Dec 31 filing, the estimated costs of renovating and rebranding The Cavendish London have gone up to GBP77.3 million from GBP55.0 million due to regulatory changes, remediation of latent site conditions and higher-than-expected inflationary pressures. The terms of the Cavendish Management Agreement announced in 2023 required the Cavendish Operator (wholly-owned by The Ascott Ltd) to contribute 50% of the costs of the renovation and rebranding of The Cavendish London, with the remaining balance 50% to be borne by CLAS.

 

CLAS says the property&rsquo s post-renovation stabilised ebitda yield is expected to be 6.1% and its valuation on a stabilised basis will remain unchanged at GBP316.0 million. The Cavendish London has 230 units and a gross floor area of 10,900 sqm (117,326.62 sq ft).

It is 2% lower on a same-store basis after excluding acquisitions and divestments

 

[SINGAPORE]   CapitaLand Ascott Trust   : HMN 0%&rsquo s (Clas) gross profit rose 1 per cent year on year for the third fiscal quarter ended September.

 

On Wednesday (Oct 29), the lodging trust&rsquo s managers attributed the increase to stronger operating performance, portfolio reconstitution and asset enhancement initiatives. These mitigated the impact of depreciation of foreign currencies against the Singapore dollar, added the managers.

 

However, gross profit was 2 per cent lower on a same-store basis after excluding acquisitions and divestments. This was due to a one-off land tax adjustment relating to a property in Australia, said the managers.

 

For the nine months ended Sep 30, gross profit rose 4 per cent year on year, or 2 per cent on a same-store basis.

 

Breaking down its Q3 gross profit, the managers said that 14 per cent came from the living sector, 55 per cent from management contracts with minimum guaranteed income, and the remaining 31 per cent from management contracts for hospitality properties.

 

Revenue per available unit (RevPAU) for Q3 2025 grew 3 per cent on the year. The managers said the increase in RevPAU was mainly due to higher average occupancy for the quarter, which rose to 83 per cent from 79 per cent the year before.

 

The strongest RevPAU growth came from its Australia portfolio, which rose 22 per cent, driven by sports events in the second half of FY2025. 

 

RevPAU in the UK and the US also grew, by 9 per cent and 8 per cent, respectively. 

 

In contrast, the Japan portfolio saw a 23 per cent decline, mainly due to the addition of Chisun Budget Kanazawa Ekimae, a hotel acquired in January 2025 with a lower RevPAU. The Singapore portfolio recorded a 2 per cent drop, which the managers attributed to a shift in the Formula 1 event dates.

 

As at end-September 2025, Clas&rsquo net asset value per stapled security stood at S$1.13, up from S$1.11 in the prior year. Gearing was 39.3 per cent.

Franchise-led growth expected to drive the upper-midscale brand&rsquo s continued global expansion

 

[SINGAPORE] With more than 200 Citadines hotels under its belt, Ascott on Wednesday (Sep 24) said it plans to open 20 more properties under the upper-midscale brand by end-2026.

 

The upcoming launches include Citadines on the Pier Hobart in Australia, Citadines Vue Aston Phnom Penh in Cambodia, as well as Citadines Hongkou Plaza Shanghai and Citadines Huadu Guangzhou in China. 

 

Slated to open in the second half of 2026, Citadines Hongkou Plaza Shanghai will operate under a franchise agreement, and will bring the total number of Citadines properties in the Tier-1 Chinese city to about 10. 

 

Ascott&rsquo s Citadines portfolio currently stands at 205 properties with about 35,000 units worldwide. Of these, 127 properties, or more than 60 per cent, are already operational.

 

Since a brand refresh three years ago, Ascott &ndash the lodging arm of CapitaLand Investment &ndash has signed more than 50 Citadines hotels, about a quarter of which were existing hotels rebranded under the Citadines flag.

 

Rebranding existing hotels has allowed the company to accelerate market entry. Such conversions accounted for 61 per cent of Ascott&rsquo s unit openings globally in the first seven months of 2025. 

 

The 175-unit Citadines Antasari Jakarta opened just three weeks after conversion in August 2025, while Citadines City Centre Liverpool completed its transformation in three months before opening in June 2025. 

 

Franchising is also a significant growth driver for the brand. Citadines now has 15 franchised properties comprising some 2,000 units across its operating and pipeline portfolio. 

 

In China, four out of five signings this year were franchise agreements, including for Citadines Universiade Centre Longgang Shenzhen, which is slated to open in November &ndash just eight months after the deal. 

 

The brand also made its debut in Morocco this year with Citadines Almaz Casablanca, opened under a franchise agreement signed in late 2024. The property houses 61 studio and one-bedroom apartments. 

 

Citadines&rsquo growth comes amid a resilient upper-midscale hospitality segment, which has consistently outperformed both before and after the Covid-19 pandemic, offering more predictable returns supported by strong brand recognition, streamlined operations and a flexible customer base, said Ascott. 

 

Valued at US$115.2 billion in 2024, the broader midscale hotel market is projected to grow at a 6.8 per cent compound annual growth rate to 2033, driven by rising disposable incomes and growing demand for value-driven accommodation.

 

Against this backdrop, Ascott sees opportunities to expand Citadines through its flexible model and franchise strategy.

 

Serena Lim, chief growth officer at Ascott, said that Citadines&rsquo flexible model, which supports both short and extended stays, appeals to owners.

 

She added that the brand&rsquo s franchise model, which is conversion-friendly and operationally efficient, allows partners to enter markets faster and will become a key driver of Citadines&rsquo global expansion.

 

Additionally, Citadines is moving beyond urban centres to include resort destinations. This includes Citadines Selavia Phu Quoc in Vietnam launching in 2027 and Citadines Mactan Cebu Resort in the Philippines opening in 2028. 

Lodging trust has a tested playbook of operating in a spread of geographies and asset classes with disciplined capital management

 

[SINGAPORE] The share price of CapitaLand Ascott Trust (Clas) &ndash the largest lodging trust in the Asia-Pacific by total assets &ndash is undervalued, said Serena Teo, the chief executive officer of the managers of the stapled group. 

 

&ldquo Today, we trade at just under 0.8 times to book, and we&rsquo re offering a distribution yield of a high 6 per cent,&rdquo she said.

 

The S$0.885 closing price for the counter on Friday (Aug 29) is 79 per cent of the S$1.12 net asset value per stapled security as at Jun 30, 2025. The price also reflects 6.9 per cent distribution yield based on the S$0.061 distribution per stapled security (DPS) for the financial year ended Dec 31, 2024.

 

Teo, who became CEO of Clas&rsquo managers in June 2022, has put her money where her mouth is.

 

Last year, she received 38 per cent of her total remuneration of S$1.16 million in Clas stapled securities. In February this year, she bought 500,000 stapled securities at S$0.895 each, amounting to S$447,500. This raised her direct interest in Clas to 0.018 per cent from 0.005 per cent.

 

Teo said Clas&rsquo market capitalisation, at close to S$3.4 billion, is &ldquo probably what&rsquo s preventing us from being in the Straits Times Index (STI)&rdquo , when asked what it would take for the counter to be included in the benchmark index. &ldquo If the share price recovers to a level that is closer to the book value/NAV (net asset value), the market cap will go up&hellip I think that would be when we&rsquo ll be able to enter the STI,&rdquo she added. 

 

Clas began life as Ascott Residence Trust (ART), which was floated on the Singapore Exchange in 2006 as the first pan-Asian serviced residence real estate investment trust (Reit) with an initial portfolio value of S$856 million comprising 12 assets with more than 2,000 units in Singapore, China, Indonesia, the Philippines and Vietnam. 

 

In late 2019, ART merged with Ascendas Hospitality Trust (AHT), a stapled group comprising a Reit and a business trust.

 

The combined entity, a stapled group, retained the ART name.

 

CapitaLand Ascott Trust acquires three rental housing properties in Japan for 4 billion yen

In September 2022, ART was renamed Clas.

 

Clas&rsquo portfolio currently comprises serviced residences, hotels, rental housing and student accommodation across 104 properties with more than 19,000 units in 45 cities in 16 countries including Singapore, Australia, Japan, France, the UK and the US.

 

Out of the total portfolio value of about S$8 billion, hospitality assets (serviced residences and hotels) have a 83 per cent share rental housing and student accommodation (or the living sector) account for the balance 17 per cent.

 

The group&rsquo s mid-term target is to grow the living sector share to 25-30 per cent of portfolio value, with the balance 70-75 per cent in hospitality assets.

 

Sometimes misunderstood

&ldquo I think some people still feel that Clas is a hospitality-only type of portfolio. And there is a view that, compared with other asset classes, the revenue streams of hospitality products are seasonal and volatile,&rdquo noted Teo.

 

However, she said that Clas offers a &ldquo distinct value proposition of combining stability with growth&rdquo .

 

Clas&rsquo living sector assets as well as management contracts with minimum guaranteed income (MGI) and master leases on some of its hospitality assets provide a stable income stream, which accounted for 66 per cent of Clas&rsquo H1 2025 gross profit of S$182.5 million.

 

  &ldquo This strengthens our portfolio resilience through market cycles, insulating Clas from seasonal fluctuations in the hospitality trade,&rdquo said Teo.

 

&ldquo On the other hand, our hospitality assets that are on management contracts (without MGI) enable us to capture upside from the strong travel demand,&rdquo she added. This is the growth income part of Clas&rsquo business, which accounted for the balance 34 per cent of the gross profit in H1 2025.

 

Growing investor interest in lodging

Asked about the potential competition to Clas from the expected listings of Centurion Accommodation Reit (which will hold purpose-built worker accommodation and purpose-built student accommodation assets) and the Coliwoo Group co-living business on the SGX, Teo said the planned flotations are in tandem with growing investor interest in lodging assets this is also a bright spot for Clas.

 

Lodging assets beckon investors with strong sector fundamentals, underpinned by evolving mobility trends and growing living sector demand, Teo noted. &ldquo With investors recognising the growth potential of the lodging sector, we expect more liquidity as they seek quality investment opportunities,&rdquo she added.

 

&ldquo With almost 20 years of experience, Clas has grown to be the largest lodging trust in Asia-Pacific. Our global scale, diversification across geographies, asset classes and contract types, and support by our strong sponsor CapitaLand Investment set Clas apart from others,&rdquo said Teo.

 

The lodging asset classes that the stapled group has exposure to, cater to varying durations of stay &ndash from the shorter stay of hotels to a slightly longer stay of serviced residences, followed by student accommodation and rental housing.  

 

Leases at Clas&rsquo 26 rental housing properties, all in Japan, are typically for two years. For student accommodation, the lease duration is typically for an academic year. 

 

The longer-stay properties add stability and resilience to the portfolio, said Teo. &ldquo Our average length of stay in the entire portfolio comes in at about two months. It&rsquo s quite different from a portfolio that is fully hotel.&rdquo  

 

Clas&rsquo eight student accommodation assets in the US serve universities where 90 per cent of students, on a blended basis, are domestic.

 

&ldquo For whatever reason, if the international student demand is affected, there&rsquo s more than sufficient domestic demand to replace the international demand,&rdquo said Teo.

 

Scale opens doors

While Teo does not have a target portfolio size for Clas, she acknowledges that size does matter.

 

Following the merger with AHT, the trust had sufficient scale to be included in the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index) in June 2020.

 

That opened the door for Clas to have access to global investors, boosting trading liquidity in the counter. In 2024, the average daily trading volume for Clas stapled securities was about seven million.

 

&ldquo When you have a certain size, there are better economies of scale. There&rsquo s also better diversification, investor awareness and lender support,&rdquo said Teo.

 

Tested playbook

&ldquo We have demonstrated a track record of creating value for stapled security holders through strategic portfolio reconstitution and timely redeployment of divestment proceeds into DPS-accretive opportunities.&rdquo These include embarking on higher-yielding acquisitions and asset enhancement initiatives (AEIs) and paring down high-interest debt.

 

&ldquo Since the start of 2024, we have divested more than S$500 million worth of properties and completed acquisitions of about S$560 million. And the acquisitions are all DPS accretive,&rdquo said Teo.

 

Growing Clas further will be about being &ldquo laser-focused on making sure we are able to increase the portfolio&rsquo s quality of earnings and deliver stable distributions to stapled security holders, being able to have that very disciplined capital management so that when the need arises, we have the ability to top up distributions to stapled security holders&rdquo .

 

During Covid &ndash   the most difficult period for the hospitality sector &ndash the group had enough reserves through undistributed divestment gains to top up distributions in 2020 and 2021.

 

Another scenario when it would be appropriate to distribute some of the undistributed divestment gains is when there is an AEI that involves closing the property temporarily, Teo said.

The properties are expected to strengthen the trust&rsquo s stable income stream

 

CapitaLand Ascott Trust   : HMN -0.57%(Clas) has acquired three rental housing properties in Japan for a total of 4 billion yen, said managers of the real estate investment trust (Reit) on Wednesday (Aug 27). 

 

The deal, worth S$34.2 million from exchange-rate figures provided by the managers, covers three properties: Splendide Namba West and Pregio Esaka South in Osaka, and Pre de Cort Nishikyogoku in Kyoto. 

 

Serena Teo, the chief executive officer of the manager, said: &ldquo The acquisition demonstrates Clas&rsquo ability to reconstitute our portfolio by redeploying divestment proceeds into higher-yielding assets, further enhancing Clas&rsquo portfolio and the quality of our earnings.&rdquo

 

The acquisition has a distribution per stapled security (DPS) accretion of 0.3 per cent. 

 

Teo said: &ldquo Built about five years ago, the three rental housing properties are located in prime areas of key gateway cities with expanding economic opportunities. With average lease terms of about two years and an average occupancy of about 97 per cent, the acquisition strengthens our stable income stream and portfolio resilience.&rdquo  

 

The freehold properties are also expected to contribute to Clas&rsquo distributable income &ldquo immediately&rdquo , with an expected net operating income (NOI) entry yield of 4 per cent in the 2025 financial year, which ends in December. 

 

This is &ldquo significantly higher&rdquo than the NOI exit yield of 0.4 per cent from the divestment of Citadines Karasuma-Gojo Kyoto serviced apartments, noted the managers. 

 

NOI reflects the annual profitability of a property investment in relation to its initial purchase price. 

 

The acquisitions were funded by Japanese yen-denominated debt and the sale of Citadines Karasuma-Gojo Kyoto, which netted around 6.2 billion yen in October last year. 

 

The combined distributable income from the properties is expected to more than fully replace the income from the divested hotel, added the managers. 

 

&ldquo Japan is one of our key markets. Post-acquisition, Clas&rsquo properties in Japan account for 17.7 per cent of our total portfolio value, enabling us to better capitalise on the strong lodging demand in the country, while maintaining a geographically diverse portfolio,&rdquo said Teo. 

Revenue was up 3% year on year at S$398.5 million, from S$386.4 million

 

[SINGAPORE] The manager of CapitaLand Ascott Trust (Clas) : HMN -0.55% on Tuesday (Jul 29) posted a 1 per cent drop in distribution per stapled security (DPS) to S$0.0253 for its first half ended Jun 30, from S$0.0255 in the previous corresponding period. 

 

Revenue for the first half inched up 3 per cent to S$398.5 million from S$386.4 million in the year-ago period. 

 

Gross profit rose 6 per cent, to S$182.5 million from S$172.9 million previously. 

 

The higher gross profit and revenue were mainly attributed to stronger operating performance, a portfolio reconstitution strategy and asset enhancement initiatives. 

 

H1&rsquo s total distribution was largely unchanged on the year, at S$96.49 million, compared to S$96.47 million. 

 

The distribution will be paid out on Aug 29, after the record date of Aug 6. 

Ascott secures four new signings and one opening under The Crest Collection while Frasers Hospitality opens two new China properties under Modena by Fraser

[SINGAPORE] Lodging sector players Ascott and Frasers Hospitality issued separate statements on Tuesday (Jun 3) announcing their expansion in Asia with new signings and openings.

 

Ascott, the wholly owned lodging business of CapitaLand Investment (CLI), secured four new signings and one opening under its luxury brand, The Crest Collection, in the past six months, amid rising demand for luxury travel. 

 

This adds more than 1,200 units to its portfolio, which now comprises 16 properties with more than 2,700 units, both operational and in the pipeline, across 11 countries and 13 cities, CLI said. 

 

Meanwhile, Frasers Hospitality, a Frasers Property unit, opened two new China properties under its Modena by Fraser brand. 

 

The additions are part of Fraser Hospitality&rsquo s efforts to grow its presence in mainland China and strengthen its leadership in the extended-stay segment.  

 

&ldquo The China market is central to our long-term strategy for Asia... Our two new Modena by Fraser properties represent a significant step in strengthening our presence in this region,&rdquo said Eu Chin Fen, chief executive officer of Frasers Hospitality. 

 

Ascott taps growing luxury travel market 

Among Ascott&rsquo s new additions under The Crest Collection is Sen/Ka Tokyo, the brand&rsquo s maiden signing in Japan that is set to open in the second half of 2029.

 

The brand&rsquo s expanded footprint in Asia also includes two China developments. They are Hong Yuan Hotel which opened in Haikou, Hainan province, at the end of 2024, and a property in Wuhan&rsquo s Donghu New Technology Development Zone slated to open by mid-2026.

 

The brand is making its debut in two Middle East countries.

 

Its first resort, Al Mahra Resort, is set to open in early 2027 in the United Arab Emirates. Its first Saudi Arabia property is slated to open in the country&rsquo s capital, Riyadh, in 2028.

 

Frasers Hospitality opens two China properties in line with Asia strategy

Modena by Fraser Shenzhen, the brand&rsquo s seventh property in China, is located in the heart of the Luohu district, Shenzhen, in the Greater Bay Area.

 

The residence, which soft opened on Mar 29, 2025, features 325 contemporary apartments ranging from studios to two-bedroom units that are designed with multi-functional areas to support short and long-term stays.

 

Housed in Shennan 1001, a landmark development in Shenzhen, the tower&rsquo s spiral facade takes inspiration from traditional Chinese scroll paintings.

 

As the city&rsquo s first property under the Modena by Fraser brand, it offers direct connectivity to Hong Kong and is minutes away from the Luohu, Wenjindu and Liantang border crossings. It is a short drive to Luohu port and is connected to Shenzhen Metro via lines 2, 5 and 8.

 

It includes lifestyle amenities designed to support active living and to facilitate community interaction, such as a pickleball court, a gym, yoga studio, relaxation lounge, lobby cafe and an outdoor barbecue area.

 

Modena by Fraser Wujiaochang Shanghai, the brand&rsquo s eighth China property, soft opened on May 20, 2025.

 

Located at the heart of the Yangpu district, Shanghai, it is close to Wujiaochang commercial hub as well as global tech companies, shopping centres and educational institutions such as Fudan University and Tongji Universities.

 

It offers 307 fully furnished studios and one and two-bedroom apartments ranging in size from 23 to 66 square metres.

 

Designed to enhance productivity and relaxation, the property features facilities such as a landscaped garden, a relaxation room, a yoga studio and a gym.

 

It also includes meeting spaces and a common room with amphitheatre seating, where guests can host business and social events, alongside a restaurant. It has access to multiple bus routes and metro lines 10 and 18.

The issuance, with OCBC as lead manager and bookrunner, is expected to be on or around May 28

 

HOSPITALITY player CapitaLand Ascott Trust (Clas) : HMN 0% has priced S$260 million in perpetual securities at 4.2 per cent, it announced on Wednesday (May 21).

 

The issuance is expected to be on or around May 28.

 

The move is part of Clas&rsquo S$2 billion multicurrency debt issuance programme established in September 2009. OCBC has been appointed the lead manager and bookrunner in the latest issuance.

 

The net proceeds will be used for the redemption of S$250 million in fixed-rate perpetual securities issued by DBS Trustee on Jun 30, 2015. It will also be used to refinance or repay CapitaLand Ascott Reit&rsquo s borrowings, and finance any asset enhancement initiatives or working capital requirements of the real estate investment trust.