CapitaLand Ascott Trust Lifted by New Hotels' Gross Profit

CapitaLand Ascott Trust's (Clas) managers said in a business update on April 28 that the trust's gross profit rose 4 per cent year on year in the first quarter of 2025.

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Gross profit from new properties in the quarter replaced the drop in gross profit from divestments in 2024, the managers said, driven by stronger performance from properties the trust renovated last year.

These new properties include lyf Funan Singapore, acquired on Dec 31, 2024, as well as Japan hotels ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, both bought on Jan 31, 2025.

Seventy per cent of profits in the quarter were from stable income sources, the managers said, with the remaining 30 per cent from growth income sources.

Such stable income sources included management contracts of longer-stay properties such as rental housing and student accommodation, as well as master leases and management contracts with minimum guaranteed income.

Growth income was contributed largely by management contracts of hospitality properties.

Excluding acquisitions and divestments, Clas' gross profit was 1 per cent higher on a same-store basis, said the managers.

In most key markets in the trust's portfolio, revenue per available unit (RevPAU) for the first quarter of 2025 grew year on year, with its Australian, Singapore, British and American portfolios showing growth of between 1 per cent and 12 per cent.