CapitaLand Ascott Trust (HMN) Q1 2025 TU earnings summary

Executive summary

• 1Q 2025 gross profit rose 4% YoY; same-store gross profit increased 1%, supported by stronger performance at renovated properties and new acquisitions replacing divested income.

• Stable income sources generated 70% of gross profit, while portfolio RevPAU rose 4% as average occupancy increased to 77% from 73% YoY.

• Operations span 46 cities in 16 countries, with Asia Pacific accounting for 57% of total assets as at 31 Mar 2025.

Financial highlights

• Gross profit rose 4% YoY; on a same-store basis, excluding acquisitions and divestments, gross profit increased 1%.

• Portfolio RevPAU increased 4% YoY, driven mainly by average occupancy of 77% versus 73% in 1Q 2024.

• Japan hotels acquired in January contributed to income from 1Q 2025; gross profit from new properties replaced gross profit lost from 2024 divestments.

Outlook and guidance

• Australia’s 2Q outlook remains positive, with expected support from sporting events and Katy Perry concerts; Singapore expects higher transient demand during concerts and events but subdued corporate and relocation demand.

• Japan outlook remains robust on cherry blossom season and long weekends; UK forward bookings include corporate and group demand, with the London Marathon expected to provide an uplift.

• Planned 2025–2026 asset enhancements may be adjusted to reflect macroeconomic conditions, lodging demand and renovation costs; past undistributed divestment gains are intended to mitigate short-term impact on distributions.

• Gearing is expected to remain under or around 40%; stable income sources are expected to support resilient operating performance amid macroeconomic uncertainty.