SINGAPORE: CapitaLand Ascott Trust (CLAS) reported a 4% year-on-year (YoY) gross profit increase for the first quarter of fiscal year 2025 (Q1 FY2025), ended March 31. This growth in profit comes as the trust successfully replaced the income lost from divestments in 2024 with new properties, The Edge Singapore reported.
Excluding acquisitions and divestments between Q1 FY2024 and Q1 FY2025, gross profit increased by 1% YoY on a same-store basis. Gross profit refers to net property income.
The trust’s performance was helped by its acquisitions, which included Teriha Ocean Stage in January 2024, lyf Funan Singapore in December 2024, and ibis Styles Tokyo Ginza along with Chisun Budget Kanazawa Ekimae in January 2025.
On the other hand, the trust sold several properties last year, including Courtyard by Marriott Sydney-North Ryde in January 2024, Citadines Mount Sophia Singapore, Hotel WBF Kitasemba East, Hotel WBF Kitasemba West, and Hotel WBF Honmachi in March 2024, Novotel Sydney Parramatta in September 2024, and Citadines Karasuma-Gojo Kyoto and Infini Garden in October 2024.
Of the gross profit, 70% came from stable sources, which include master leases and management contracts. Of this, 51% came from minimum guaranteed income, and 19% was from management contracts related to student accommodation and rental housing. The rest (30%) was driven by growth income from management contracts for hospitality properties.
As of March 31, CLAS’ aggregate leverage increased to 39.9%, from 38.3% at the end of December last year, excluding the trust’s perpetual securities, which are classified as equity.
At the same time, the interest coverage ratio (ICR), which measures a company’s ability to manage its outstanding debt and includes distributions to perpetual securityholders, increased 3.2 times in Q1 FY2025, up from just 3.1 times for FY2024. The ICR is based on a trailing 12-month period. /TISG
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