CapitaLand Ascott Trust (HMN) H1 2025 earnings summary

Executive summary

• 1H 2025 revenue rose 3% YoY to S$398.5m and gross profit rose 6% to S$182.5m, supported by stronger operations, portfolio reconstitution and asset enhancement initiatives.

• Same-store revenue and gross profit each increased 4% YoY; portfolio-wide REVPAU rose 3% to S$150.

• Stable income sources contributed 66% of gross profit, including 16% from rental housing and student accommodation; the portfolio comprised 101 properties across 16 countries and 45 cities.

Financial highlights

• Gross revenue was S$398.453m versus S$386.369m in 1H 2024; gross profit was S$182.524m versus S$172.902m.

• Total distribution was S$96.494m versus S$96.465m; adjusted core distribution rose 1% to S$91.6m. DPS was 2.526 cents versus 2.55 cents; core DPS was 2.40 cents versus 2.41 cents.

• Net income was S$100.496m versus S$84.281m; total return before tax was S$115.730m versus S$104.463m.

• Operating cash flow was S$133.530m versus S$137.372m; cash and cash equivalents at 30 June 2025 were S$504.730m.

• Total assets were S$8,775.841m and net assets were S$4,747.163m at 30 June 2025.

Outlook and guidance

• Effective borrowing cost was 2.9% p.a. and is expected to remain stable; gearing is expected to stay at or below ~40%.

• Outlook remains cautiously optimistic, with diversification and stable income supporting distributions; asset enhancements and development are expected to lift income and portfolio value.

• 3Q 2025 demand may soften in Singapore due to the F1 schedule shift and lower corporate short stays, and in the UK without Paris Olympics spillover; group and long-stay bookings provide support.

• Japan demand is supported by long-stay groups and the World Athletics Championships; US corporate travel is expected to be resilient, with student accommodation over 80% pre-leased for AY 2025–2026.

• The former Somerset Liang Court redevelopment is expected to complete in 2026 and open in 2027 as a 192-unit serviced residence with a hotel licence.