Broker Name: CGS International
Date of Report: April 28, 2026
Excerpt from CGS International report.
Report Summary
- Stock: CapitaLand Ascott Trust (CLAS SP)
- Actionable Recommendation: Add – Maintain “Add” rating, indicating a positive outlook.
- Target Price: S\$1.13
- Current Price: S\$0.90
- Upside: 25.6%
- Dividend Yield (FY26F): 6.75%
- Key Highlights:
- 1QFY26 core DPU declined year-on-year due to asset enhancement initiatives (AEI) and temporary closures, but operational performance remains resilient.
- Distribution income is stable, supported by capital top-ups and past divestment gains to offset AEI impacts.
- Portfolio is underpinned by master leases and living sector exposure, offering downside protection.
- Ongoing AEIs (capex c.S\$180m) expected to complete between 2H26F and FY27F, likely to drive upside.
- Cost of debt remains low (2.8%), with 78% debt on fixed rates and gearing at 38.9%.
- ESG leadership: CLAS is best-in-class in sustainability, targeting 100% green certification by 2030.
- Implications:
- Investors can expect a stable dividend yield and potential upside if AEIs are completed ahead of schedule.
- Risks include unfavorable FX and prolonged travel disruptions.
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/
