CapitaLand Ascott Trust (HMN) Q1 2024 TU earnings summary

Executive summary

• 1Q 2024 gross profit rose 15% YoY, driven by stronger operations and contributions from new properties; same-store gross profit increased 7%.

• Portfolio RevPAU rose 6% YoY to S$135, matching pro forma 1Q 2019 levels; occupancy was stable at 73%, or 88% of 1Q 2019 pro forma levels.

Financial highlights

• Stable income contributed 64% of 1Q gross profit and growth income 36%; the higher stable-income share reflected seasonally softer transient travel.

• Master-lease gross profit increased 16% YoY, while MCMGI gross profit grew 38% on stronger performance and contributions from two acquired properties.

Outlook and guidance

• RevPAU growth is expected to moderate after FY 2023’s strong rebound, with growth primarily driven by occupancy as ADR stabilises.

• Gearing is expected to remain below 40%; travel demand, portfolio reconstitution, AEIs and development projects are expected to support returns and growth capacity.