CapitaLand Ascott Trust (HMN) announced its business update for the three months ended Sep, 30 2025. Gross profit grew 1% year-on-year, supported by stronger operating performance, portfolio reconstitution and asset-enhancement initiatives, despite currency depreciation against the Singapore dollar. On a nine-month basis, gross profit was up 4% from the prior-year period.

During the quarter, 69% of gross profit came from stable income sources such as master leases, minimum guaranteed contracts and its rental-housing and student-accommodation portfolio. Portfolio revenue per available unit for properties under management contracts and minimum guarantees rose 3% year-on-year to SGD 163, driven by an average occupancy of 83%.

CLAS completed more than SGD 800 million of divestments since 2024, including the Oct, 02 2025 sale of Citadines Central Shinjuku Tokyo for JPY 25.0 billion (about 222.7 million Singapore dollars), representing almost a 100% premium to its Jun, 30 2025 book value and an exit EBITDA yield of 3.2%. Proceeds will be used to repay higher-cost debt, fund future asset-enhancement works and pursue higher-yielding investments.

On the acquisition front, the trust deployed JPY 4.0 billion (about 34.2 million Singapore dollars) in Aug, 01 2025 to buy three rental-housing properties in Osaka and Kyoto at an expected first-year net operating income yield of 4%, compared with an exit yield of 0.4% for the divested Citadines Karasuma-Gojo Kyoto.

Gearing stood at 39.3% as of Sep, 30 2025, providing an estimated 1.8 billion Singapore dollars of additional debt headroom before reaching the 50% regulatory limit. About 78% of total debt is on fixed rates, the average cost of borrowing is 2.9% per annum and interest cover is 3.1 times. All debt maturing in 2025 has been refinanced or repaid.

Looking ahead, CapitaLand Ascott Trust will continue to recycle capital through selective divestments, accretive acquisitions and approximately 240 million Singapore dollars of planned asset-enhancement and development projects through 2027, including the redevelopment of the former Somerset Liang Court Singapore and refurbishments at properties in London, Paris, Seoul and Sydney. The manager said it remains “cautiously optimistic” and is committed to delivering stable distributions amid macroeconomic uncertainties.