CapitaLand Ascott Trust (CLAS) has reported a robust start to 2024, with its first quarter gross profit increasing by 15% year-on-year, buoyed by sustained demand for lodging and strategic portfolio adjustments. This rise was primarily driven by enhanced operating performance and new property acquisitions.
During Q1 2024, CLAS witnessed growth in both its stable and growth income sources, which contributed 64% and 36% to its gross profit, respectively. Notably, the trust acquired Teriha Ocean Stage, a rental housing property in Fukuoka, Japan, and divested several properties, including Courtyard by Marriott Sydney-North Ryde in Australia and multiple properties in Osaka, Japan.
The trust’s performance was particularly strong in its key markets—Australia, Japan, Singapore, the UK, and the USA—all of which registered year-on-year increases in Revenue per Available Unit (RevPAU).
In response to the dynamic market conditions, CapitaLand Ascott Trust strategically divested properties that had reached optimal stages in their life cycles, and reinvested in more optimal, higher-yielding assets. This proactive portfolio reconstitution aims to enhance the quality and returns of the portfolio, maintaining a balance between stability and growth.
Looking forward, CapitaLand Ascott Trust remains focused on leveraging its diversified and well-balanced portfolio to deliver sustainable returns. The trust’s prudent capital management and robust financial health, underscored by a strong gearing position and diversified funding sources, position it well to navigate future market cycles and capitalise on growth opportunities.
This promising start to the year reflects CapitaLand Ascott Trust’s agility in adapting to market conditions and its strategic vision in optimising its asset portfolio to ensure long-term value creation for its stakeholders.
