CapitaLand Ascott Trust (HMN) Q3 2024 TU earnings summary

Executive summary

• 3Q 2024 gross profit rose 8% YoY; same-store gross profit increased 2%, excluding acquisitions and divestments, on stronger operations.

• Portfolio mix was 66% stable income and 34% growth income; RevPAU rose 3% YoY to 105% of 3Q 2019 pro forma levels.

Financial highlights

• Gross profit from master leases rose 4% YoY; MCMGI gross profit rose 47% and longer-stay properties rose 11%.

• Portfolio RevPAU reached S$180 in 3Q 2024; average occupancy was 79%, versus 77% in 3Q 2023, while ADR remained stable YoY and 15% above pre-Covid levels.

• 9M 2024 foreign-exchange impact on gross profit was a 1.6% loss after hedges.

Outlook and guidance

• 4Q 2024 lodging demand outlook was healthy in Australia, France, Japan, the UK and the US, supported by seasonal travel, corporate bookings and events.

• Average cost of debt was expected to remain stable at ~3% p.a. in 2024; gearing was expected to remain at or below ~40%.

• AEIs scheduled for 2024–2026 are expected to lift distribution income; completed and ongoing projects include London, Paris, Dublin and Sydney properties.

• Student accommodation rent growth for AY 2024–2025 was ~4.5% YoY, or ~6% excluding Wildwood Lubbock; US hotel outlook remained positive.