Broker: OCBC Group Research
Date of Report: 28 July 2026
Excerpt from OCBC Group Research report.
Report Summary
Stock Focus: CapitaLand Ascott Trust (CLAS SP EQUITY)
Action: BUY
Target Price: SGD 0.950
Key Highlights:
- OCBC maintains a BUY rating on CapitaLand Ascott Trust (CLAS) with a fair value estimate of SGD 0.950, representing a potential total return in excess of 10% from the last close of SGD 0.915.
- 1H26 distribution per stapled security (DPS) was flat year-on-year at 2.53 Singapore cents, in line with management’s guidance for stable DPS. Management expects DPS to stay stable in FY26 and potentially return to growth in FY27.
- CLAS operates the largest lodging trust in Asia Pacific, with a diversified portfolio across 45 cities and 16 countries. Its income is derived from stable and growth sources, including student accommodation in the US and rental housing in Japan, sectors less affected by macroeconomic weakness.
- Operational performance remains resilient with 2Q26 RevPAU up 1% YoY on a same-store basis. The trust’s US student accommodation assets are more than 95% pre-leased for the next academic year, with revenues expected to grow over 5% year-on-year.
- Gearing improved to 37.7% as of June 2026, with 77% of debt on fixed rates and cost of debt stable at 2.8%.
- Potential catalysts include stronger-than-expected lodging demand, a return to core DPS growth, and accretive acquisitions.
- CLAS offers a forward 12-month distribution yield of 6.8%, above its five-year historical average.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can access the full research report from the broker’s website.
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