CAPITALAND Ascott Trust’s (Clas) gross profit rose 8 per cent year on year in the third fiscal quarter ended September.
On Wednesday (Oct 30), the lodging trust’s managers attributed the stronger top-line performance to portfolio reconstitution initiatives and stronger operating performance.
This came as acquisitions, completed asset enhancement initiatives (AEIs), and interest savings from repayment of higher-interest debts with divestment proceeds helped to mitigate the impact of income lost through divestments and ongoing AEIs.
Excluding acquisitions and divestments, gross profit was 2 per cent higher on a same-store basis due to stronger operating performance, said the managers.
After accounting for the impact of foreign exchange and hedges on gross profit, the stapled group turned in a year-on-year loss of 1.6 per cent for the first nine months of 2024.
Revenue per available unit (RevPAU) for Q3 2024 grew 3 per cent on the year to exceed pre-Covid Q3 2019 figures calculated on a pro-forma basis, which included the performance of Ascendas Hospitality Trust’s portfolio before its merger with Ascott Residence Trust.
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Clas’ managers said the increase in comparative RevPAU was mainly due to higher average occupancy for the quarter, which ticked up to 79 per cent from 77 per cent the year before and stood at about 92 per cent of pre-Covid levels.
They also noted that average daily rates (ADR) remained “relatively stable” on a year-on-year basis at 15 per cent above pre-Covid levels.
All key markets performed above, or around, same-store 2019 levels – though actual RevPAU in the Australia portfolio fell 11 per cent in Australian dollar terms in the absence of contributions of divested assets.
Overall, the managers noted a “healthy” outlook for Australia as they look forward to a “typically busier period” for both domestic and international travel in the following quarter.
Clas’ other markets of Japan, Singapore, UK and US all demonstrated year-on-year actual RevPAU growth in local currency terms.
Revenue in France grew due to master lease renewals and an uplift from the Olympic Games, while demand for travel in Japan continued to be robust.
In Singapore, stronger performance of The Robertson House by The Crest Collection helped to uplift RevPAU after its renovation in Q1 2024, while robust performance in the UK was attributed to sustained lodging demand.
The US, which accounts for the largest proportion or 20 per cent of Clas’ total assets, grew in RevPAU contributions due to higher ADR as demand was boosted by large events. The managers expect limited new supply of hotel rooms to support performance in the US portfolio.
As at end-September 2024, Clas’ net asset value per stapled security stood at S$1.11, down slightly from S$1.12 in the prior year.
Gearing was 38.3 per cent, which the managers estimated to provide debt headroom of about S$1.9 billion assuming a maximum aggregate leverage of 50 per cent.
Stapled securities of Clas ended Tuesday flat at S$0.91.
