CapitaLand Ascott Trust (HMN) H2 2024 earnings summary

Executive summary

• FY 2024 core DPS was 5.49 cents, up 1% YoY, supported by operating gains and portfolio reconstitution despite FX and financing headwinds.

• Portfolio comprised 100 properties across 45 cities in 16 countries, with S$8.8b in total assets and a mix of stable- and growth-income assets.

• Portfolio valuation rose 1%, or S$72m, reflecting stronger operating performance and completed AEIs.

Financial highlights

• 2H 2024 revenue rose 6% YoY to S$423.2m and gross profit increased 8% to S$198.0m; FY revenue was S$809.5m, up 9%, and gross profit was S$370.9m, up 10%.

• 2H total distribution was S$134.8m, down 4% YoY, and total DPS was 3.55 cents, down 7%; FY total distribution fell 2% to S$231.2m and total DPS fell 7% to 6.10 cents.

• Excluding non-periodic FX gains, 2H core distribution rose 5% to S$117.0m and core DPS rose 3% to 3.08 cents.

• Same-store revenue and gross profit each increased 4% YoY in 2H 2024.

Outlook and guidance

• 2025 lodging-demand outlook is cautiously optimistic; geographic diversification, lodging asset classes and contract types are expected to support resilience amid macroeconomic uncertainty.

• Upcoming AEIs and divestments may cause near-term unevenness in operational income; past undistributed divestment gains are intended to support stable distributions during AEIs.

• The Cavendish London and Sydney Central Hotel AEIs are expected to complete in phases by 2026; Somerset at Clarke Quay is also slated for completion in 2026.

• Market outlooks include healthy Australian demand from major events, positive France and UK bookings, continued Japanese demand, and softer Singapore demand in 1Q 2025 against a high prior-year base.

• Portfolio reconstitution opportunities remain under evaluation, with proceeds to be redeployed into higher-yielding assets and other optimal uses to improve returns.