CapitaLand Ascott Trust (A68U) presented its latest performance and strategy updates at the DBS Global Financial Markets – Regional Property Conference 2026 held at lyf Funan Singapore on Jan, 7 2026.
The stapled group posted a 1% year-on-year rise in gross profit to 3Q 2025, driven by stronger operating performance, portfolio reconstitution and asset-enhancement initiatives that offset foreign-exchange headwinds. On a same-store basis, gross profit slipped 2% due to a one-off land-tax adjustment in Australia. For 9M 2025, gross profit increased 4% year on year, or 2% on a same-store basis.
RevPAU for properties under management contracts and minimum guaranteed income arrangements grew 3% year on year to 163 Singapore dollars in 3Q 2025, as average occupancy improved to 83%. Stable-income streams—comprising master leases, minimum-guaranteed contracts and living-sector assets—contributed 69% of third-quarter gross profit.
During 2024 and year-to-date Oct 2025, CLAS executed more than 800 million Singapore dollars of divestments at up to 100% premiums to book value, and redeployed approximately 560 million Singapore dollars into higher-yielding acquisitions, including three rental-housing properties in Osaka and Kyoto purchased in Aug, 2025 at an expected 4.0% net operating income yield.
The trust continues to enhance key assets, with four major asset-enhancement initiatives and one Singapore redevelopment under way between 2025 and 2027, requiring about 285 million Singapore dollars in total capital expenditure.
Financial metrics remain conservative: gearing stood at 39.3% as at Sep, 30 2025, providing some 1.8 billion Singapore dollars of debt headroom to the 50% regulatory limit. About 78% of debt is on fixed rates, the average cost of borrowing is 2.9% per annum and interest cover is 3.1 times. Fitch maintains a “BBB” rating with a stable outlook.
Management said it remains “cautiously optimistic” despite macroeconomic uncertainties, citing diversification across geographies, contract types and lodging segments, and reiterated its commitment to deliver stable distributions while pursuing accretive acquisitions, selective developments and asset enhancements.