CapitaLand Ascott Trust, (CLAS), achieved a 6% growth in gross profit (y-o y) for the 1H of 2025. Revenue also increased 3% to S$398.5 Million. The higher revenue and gross profit were primarily attributed to CLAS’ portfolio reconstitution strategy, and asset enhancement initiative (AEI). Gross profit and revenue both grew by 4% on a store-by-store basis in 1H 2025.
CLAS revenue per unit available (REVPAU), for the 1H of 2025, increased by 3% from S$150 to S$150 compared to S$150 in 1H of 2024. CLAS’ REVPAU in 2Q 2025 increased by 3% y-o y to S$159, largely due to higher occupancy rates. CLAS’ REVPAU grew in most of its key markets.
CLAS’ total core distribution for the 1H 2025 increased 1% yo-y, to S$91.6million. The total distribution was S$96,5 million. Core Distribution per Stapled Security and DPS were relatively stable, at 2.40 and 2.53 respectively. CLAS has committed to maintaining stable core distributions through increasing core distribution income from operational performance and distributing divestment and non-periodic gains as appropriate.
Mr Lui Chong Chee Chairman of CapitaLand Ascott Trust Management Limited & CapitaLand Ascott Business Trust Management Pte. Ltd., the managers of CLAS, said Mr. Lui Chong Chong.“CLAS is continuing to grow, with higher revenue and gross profits in 1H2025. CLAS is resilient despite global uncertainty, thanks to our diverse portfolio of assets across different geographies, asset classes, and contract types. CLAS generated 66% gross profit from stable sources in the first half of 2025. CLAS assets in the Living sector contributed 16% to the gross profit. The remaining 34% was derived from income growth sources. We are always looking for opportunities to enhance and reconstitute our portfolio. We are able, by selling properties at an optimal time in their lifecycle, to reinvest proceeds into higher yielding acquisitions, AEIs, or other value-adding uses, to deliver stable and sustained returns to Stapled Securityholders.
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Serena Teo is the Chief Executive Officer and Manager of CLAS.“As a part of proactive portfolio management, we plan to conduct three additional AEIs by 2025 or 2026. That will bring our total AEIs up to five. In the 1H of 2025, one of the AEIs was completed for ibis Seoul Insadong Ambassador. Total capital expenditure for upgrading the remaining properties is estimated at S$205million. These AEIs enhance the value of our properties in key gateway cities. This will allow them to better capture accommodation demand and boost both profitability as well as asset value.
“These AEIs compliment our growth strategy via portfolio reconstitution. CLAS acquired two limited-service freehold hotels in Japan for a total JPY21billion ($178.5m) in January 2025. This acquisition will replace more than the income of our four previously sold properties in Japan. We are continuing to improve the quality and earning resilience of CLAS’ portfolio in order to prepare us for growth.
