CapitaLand Ascott Trust (CLAS) achieved an increase of six percent in gross profit year-on-year, reaching S$182.5 million for H1-2025.
Revenue was also up three percent y-o-y to S$398.5 million.
The higher gross profit and revenue were mainly attributed to stronger operating performance, CLAS’ portfolio reconstitution strategy and asset enhancement initiatives (AEI). On a same-store basis, both gross profit and revenue grew four percent y-o-y in the first half of this year.
CLAS’ revenue per available unit (REVPAU) for H1-2025 rose by three percent to S$150, compared to H1-2024.
CLAS’ REVPAU for Q2-2025 also saw a three percent increase y-o-y to S$159 on the back of higher average occupancy rates, while most of CLAS’ key markets registered REVPAU growth.
Driven by the operating performance of the portfolio, CLAS’ total core distribution for the first six months of this year increased by one percent y-o-y to S$91.6 million, while total distribution remained at S$96.5 million.
Core Distribution per Stapled Security and DPS remained relatively stable at 2.40 cents and 2.53 cents respectively.
Given these developments, CLAS 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.
CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte Ltd chair Lui Chong Chee said: “CLAS continues to deliver consistent growth, achieving higher revenue and gross profit in H1-2025. Despite global uncertainties, CLAS remains resilient, supported by our diversified portfolio across geographies, lodging asset classes and contract types. In 1H 2025, 66 percent of CLAS’ gross profit was from stable income sources, of which 16 percent of the gross profit was contributed by CLAS’ assets in the living sector. The remaining 34 percent of the gross profit came from growth income sources. We continue to seek opportunities to reconstitute and enhance our portfolio. 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.”
Continuing growth
Meanwhile, CEO Serena Teo said: “As part of our proactive portfolio management strategy, we have planned to undertake three additional AEIs in 2025 and 2026, bringing the total number of AEIs to five. One of the additional AEIs, for ibis Ambassador Seoul Insadong, was successfully completed in 1H 2025. The total capital expenditure to upgrade the remaining four properties in the pipeline is approximately S$205 million. These AEIs will enhance the value proposition of our properties located in key gateway cities, enabling them to better capture lodging demand and uplift both profitability and asset value.”
Teo added that these AEIs complement CLAs’ growth strategy through portfolio reconstitution.
In January 2025, CLAS redeployed divestment proceeds to acquire two freehold limited-service hotels in Japan, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, for a total of S$178.5 million.
This acquisition has a DPS accretion of 1.6 percent, and will more than replace the income from the company’s four previously divested properties in Japan.
Teo concluded with: “We continue to strengthen the quality and earnings resilience of CLAS’ portfolio, positioning us for future growth.”
