CapitaLand Ascott Trust (CLAS), a stapled group comprising CapitaLand Ascott Real Estate Investment Trust (REIT) and CapitaLand Ascott Business Trust (BT), has announced an upcoming distribution to its stapled securityholders. This declaration could influence investor sentiment and potentially impact the share price in the coming weeks.

Key Highlights

• Distribution Announcement: The trust declared a distribution of 3.550 Singapore cents per stapled security for the period from 1 July 2024 to 31 December 2024.
• Breakdown of Distribution:
  • CapitaLand Ascott REIT:
    • Taxable income component: 0.347 cents
    • Tax-exempt income component: 0.721 cents
    • Capital component: 1.819 cents
  • CapitaLand Ascott BT:
    • Tax-exempt income component: 0.663 cents
• Record Date: The transfer books and register of stapled securityholders will close on 6 February 2025 at 5.00 p.m.
• Payment Date: The declared distribution will be paid on 28 February 2025.
• Tax Information: Detailed tax treatment has been provided for various categories of investors, including individuals, qualifying securityholders, CPF/SRS investors, foreign (non-individual) investors, and nominee holders.

Important Details for Securityholders

Securityholders must take note of the following critical deadlines and tax implications:

• Forms for tax declarations will be dispatched on or around 10 February 2025.
• These forms (Form A for qualifying securityholders and Form B for nominee holders) must be completed and returned by 17 February 2025 at 5.00 p.m.
• Failure to complete and return the forms will result in tax deductions at the default rate of 17%.
• The tax-exempt income component and capital component of the distribution are exempt from tax for all securityholders.
• The taxable income component must be declared as income for the year 2024 in the income tax return for the year of assessment 2025.

Distribution Policy and Financial Stability

CLAS follows a distribution policy of paying at least 90% of its taxable income and net overseas income. The actual level of distribution is determined at the discretion of the REIT Manager and the trustee-manager of CapitaLand Ascott BT. The Board of Directors has affirmed that the distribution will not compromise the financial stability of the trust.

Distributions are made on a semi-annual basis, calculated as of 30 June and 31 December each year.

Potential Impact on Share Value

This announcement is likely to attract attention from investors due to the clarity on distribution breakdown and the attractive yield being offered. The upcoming record and payment dates may influence trading activity as investors position themselves to qualify for the distribution. Additionally, the trust’s commitment to a minimum 90% income distribution policy may bolster investor confidence.