CapitaLand Ascott Trust (CLAS) achieved a 6% increase in gross profit year-on-year (y-o-y), reaching S$182.5 million for 1H 2025. Revenue was also up 3% 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 4% y-o-y in 1H 2025.
CLAS’ revenue per available unit (REVPAU) for 1H 2025 rose 3% to S$150, compared to 1H 2024. CLAS’ REVPAU for 2Q 2025 also saw a 3% increase y-o-y to S$159 on the back of higher average occupancy rates. Most of CLAS’ key markets registered REVPAU growth.
Driven by the operating performance of the portfolio, CLAS’ total core distribution for 1H 2025 increased by 1% y-o-y to S$91.6 million. Total distribution remained at S$96.5 million. Core Distribution per Stapled Security (DPS) and DPS remained relatively stable at 2.40 cents and 2.53 cents respectively. 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.
Mr Lui Chong Chee, Chairman of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS), said: “CLAS continues to deliver consistent growth, achieving higher revenue and gross profit in 1H 2025. Despite global uncertainties, CLAS remains resilient, supported by our diversified portfolio across geographies, lodging asset classes and contract types. In 1H 2025, 66% of CLAS’ gross profit was from stable income sources, of which 16% of the gross profit was contributed by CLAS’ assets in the living sector. The remaining 34% 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.”
Ms Serena Teo, Chief Executive Officer of the Managers of CLAS, 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.”
“These AEIs complement our 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 JPY21 billion (S$178.5 million). This acquisition has a DPS accretion of 1.6%, and will more than replace the income from our four previously divested properties in Japan . We continue to strengthen the quality and earnings resilience of CLAS’ portfolio, positioning us for future growth,” added Ms Teo.
