CapitaLand Ascott Trust (HMN) Q3 2023 TU earnings summary

Executive summary

• 3Q gross profit rose 13% YoY; lodging demand lifted portfolio RevPAU 17% YoY to 102% of 3Q 2019 pro forma levels.

• Income mix was 56% stable and 44% growth; portfolio spans 103 properties in 44 cities across 15 countries, with S$8.1b in assets.

Financial highlights

• 9M 2023 gross profit increased 23% YoY; 3Q 2023 gross profit reached 103% of 3Q 2019 pro forma gross profit.

• 3Q portfolio RevPAU rose 17% YoY and 3% QoQ; average occupancy improved from 75% in 2Q to 77% in 3Q.

• DPS of 3.48 cents was paid for 1 Jan–13 Aug 2023, including an advanced distribution of 0.701 cents for 1 Jul–13 Aug.

Outlook and guidance

• 4Q outlook was positive in Australia, China, France, Japan, Singapore, the UK, the US and Vietnam, supported by leisure, corporate, events and forward bookings.

• Renewed French leases are projected to deliver FY 2024 rent of EUR8.8m versus EUR6.9m in FY 2022, a 28% increase.

• Gearing was expected to remain below 40%; gearing and property valuations were expected to remain healthy, supported by portfolio actions and positive operating performance.

• Somerset Liang Court Singapore development is targeted for completion in 2H 2025; one more Fukuoka turnkey rental-housing acquisition is expected to complete in 2024.