Broker Name: DBS
Date of Report: (Date not explicitly stated in document; inferred as FY25 results, likely published in mid-2024.)
Excerpt from DBS report.
Report Summary
- Capland Ascott Trust (CLAS) reported stable FY25 results with distributions up 1% year-on-year to SGD233.5m, while DPU remained flat at 6.10 cents, supported by income retention for upcoming asset enhancement initiatives (AEI).
- Portfolio occupancy improved to 80%, boosting RevPAR by 3% to SGD161; performance was strong in Australia, Japan, and the US, but weaker in the UK and Singapore.
- Several major AEIs will kick off in 2026, possibly delaying full-core DPU resumption to FY28 or beyond; completion of Somerset Liang Court in 2027 and phased AEI completions are expected to drive future DPU upside.
- Balance sheet remains conservative with leverage reduced to 37.7%, and cost of debt at 2.9%; management maintains a buy rating with a target price of SGD1.15.
- Risks include softening currency exchange rates and weaker international student demand in the US PBSA sector, but strong organic growth potential remains from occupancy normalisation and strategic asset enhancements.
Above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website: https://www.dbs.com.sg
