CapitaLand Ascott Trust said its distribution income for the first quarter ended Mar, 31 2026 remained “relatively stable” despite softer gross profit caused by planned asset-enhancement works at The Cavendish London and Madison Hamburg, currency depreciation and the net impact of recent acquisitions and divestments. The REIT manager offset the temporary shortfall by distributing gains from earlier divestments and benefiting from lower interest expenses.

The Singapore-listed lodging trust reported a portfolio revenue per available unit (RevPAU) of S$137 with 77 per cent occupancy in 1Q 2026. On a same-store basis, RevPAU rose 1 per cent year-on-year when the closed Cavendish hotel, 2025 acquisitions and divestments were excluded. By market, same-store RevPAU grew 7 per cent in Australia (AUD 188), 3 per cent in Japan (JPY 10,800) and 2 per cent in Singapore (S$187), held broadly flat in the United Kingdom (GBP 127) and climbed 7 per cent in the United States (USD 158 excluding the Sheraton Tribeca renovation). Revenue from France’s fully master-leased portfolio dipped 4 per cent to EUR 5.4 million owing to an ongoing makeover at Citadines Place d’Italie Paris.

Total assets stood at 8.9 billion Singapore dollars across 106 properties in 45 cities and 16 countries, providing more than 19,000 units. Hospitality assets accounted for about 70-75 per cent of the portfolio, while rental housing and student accommodation – the “living sector” – rose to 18 per cent of asset value after recent deals.

In Feb, 2026 the trust completed a 4.6 billion yen (38.3 million Singapore dollars) purchase of three rental housing properties in Greater Tokyo, securing an initial net operating income yield of 4.1 per cent and delivering an estimated 0.2 per cent accretion to FY 2025 distribution per stapled security. Since 2024, CapitaLand Ascott Trust has closed more than 800 million Singapore dollars of property disposals at premiums of up to 100 per cent to book value and redeployed roughly 600 million Singapore dollars into higher-yielding assets.

Four asset enhancement initiatives are in progress for 2026: The Cavendish London (completion slated for 2027), Sotetsu Grand Fresa Osaka-Namba, Sheraton Tribeca New York Hotel and Citadines Place d’Italie Paris. The redevelopment of the former Somerset Liang Court into the 192-unit Somerset Clarke Quay Singapore is on track to open in 2027. Aggregate capital spending on the ongoing AEIs and the Singapore redevelopment totals about 260 million Singapore dollars, of which the trust will fund roughly 180 million dollars.

Gearing was 38.9 per cent as at Mar, 31 2026, giving the trust an estimated 1.9 billion Singapore dollars of debt headroom before reaching the 50 per cent statutory limit. Interest cover stood at 3.0 times, and some 78 per cent of borrowings were on fixed rates, supporting an all-in cost of debt of 2.8 per cent per annum. Liquidity comprised about 1.51 billion Singapore dollars in cash and undrawn facilities, and Fitch maintains a “BBB” rating with a stable outlook.

Management said the portfolio’s diversified income – roughly 60-70 per cent from master leases, management contracts with minimum guaranteed income and the living sector – underpins resilience against macroeconomic headwinds, including higher interest rates, currency swings and geopolitical tensions. The trust intends to continue selective acquisitions, strategic divestments and targeted refurbishments to achieve a 25-30 per cent allocation to the living sector over the medium term while preserving stable distributions.