Broker Name: CGS International
Date of Report: February 2, 2026
Excerpt from CGS International report.
Report Summary
- CapitaLand Ascott Trust (CLAS) delivered FY25 DPS of 6.10 Scts, in line with its stable distribution guidance, supported by higher income available for distribution despite forex and tax headwinds.
- Portfolio showed positive performance with occupancy and RevPAU growth across key markets, though US student accommodation faced supply headwinds; management expects cost of debt to remain stable and maintains a positive outlook for FY26.
- CLAS remains best-in-class for ESG in its peer group, with 67% of its assets green certified and clear sustainability goals aligned with CapitaLand’s 2030 targets.
- The stock is rated “Add” with a target price of S\$1.13, supported by a projected 6.2% dividend yield and stable operational metrics.
- Risks include unfavourable exchange rates and global travel demand slowdown, but catalysts such as faster AEI completion could drive upside.
- Peer comparison shows CLAS offers one of the highest and most stable yields among hospitality REITs in Singapore.
- Financials remain resilient with moderate asset leverage, strong cash flow, and continued focus on sustainability-linked financing.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
